The MGA sector continues to grow in influence, playing an increasingly important role in driving innovation and market development across the insurance ecosystem, according to Clyde & Co’s 2025 MGA Opinion Report, despite mounting claims pressures and heightened regulatory scrutiny.
The sector continues to thrive
This year’s report, produced in collaboration with the Managing General Agents’ Association (MGAA) to canvass the views of carriers and MGAs from across the market, highlights a maturing MGA sector that is not only navigating change but actively shaping it. MGAs are increasingly viewed by carriers as essential partners, valued for their ability to respond quickly to market demands, underwrite specialist risks, and bring agility to complex and evolving insurance environments.
This value is being recognised by carriers, with 57% expecting to increase their MGA capacity over the next two years, while 46% say they have already increased their allocation in the past 12 months. Crucially, nearly three-quarters (74%) have not reduced their deployment of capacity despite rising capital costs, underscoring the strategic importance of MGAs in helping insurers adapt to evolving market conditions.
This continued support is also reflected in the appetite for innovation. Carriers are not only backing MGAs with capacity, but also increasingly turning to them to develop new lines of business. Specialty lines (29%), financial lines (20%) and property (17%) are among the top areas where carriers expect to provide capacity to MGAs in 2025.
Key challenges persist
Among both MGAs and carriers, dissatisfaction expressed with the claims process over previous years has escalated, now representing a clear point of tension which needs to be addressed. Despite ongoing efforts across the market, 77% of MGAs say the claims process needs improvement - up sharply from 59% in our previous report in 2023. This view is even more pronounced among carriers, with 91% acknowledging the need for clearer, faster, and more customer-focused handling.
At the same time, broader economic uncertainty is adding pressure. Over half of MGAs (54%) and 69% of carriers report a negative impact on business from current market conditions. Yet rather than slowing momentum, this is prompting firms to rethink operations, accelerating digital adoption and driving greater efficiency.
Regulation is still seen as a major constraint on growth. Nearly half of MGAs (46%) and a third of carriers (34%) cite regulatory demands, particularly around Consumer Duty and Fair Value, as the biggest barriers to MGAs entering new markets or launching new products.
A positive outlook on innovation
Optimism around the benefits of emerging technologies and the value they can provide continues to grow, however. Around two-thirds of MGAs (65%) and carriers (66%) believe AI will play a supportive role in improving decision-making and operational performance. Whether through automated underwriting or faster claims triage, MGAs are increasingly using technology to deliver leaner, smarter, and more scalable solutions that meet the demands of a modern market.
Rob Crossingham, Partner at Clyde & Co, said: “This year’s report reflects a sector that remains dynamic and forward-looking, even as it faces mounting pressure from both economic volatility and regulatory scrutiny. MGAs continue to stand out for their ability to adapt, innovate, and deliver specialist solutions in a market that demands speed, precision and resilience.”
Mike Keating, CEO of the MGAA, added: “This report confirms what we’re seeing across the market - MGAs are now integral to the insurance value chain. Far from being solely a niche channel, they drive product innovation, accelerate digital transformation, and provide carriers with the specialist insight needed to navigate today’s complex risk landscape. As trusted partners, MGAs are well-placed to help insurers adapt, grow, and deliver greater customer value in a rapidly evolving environment.”
The report also explores emerging growth areas such as parametric insurance, climate risk solutions, and expansion into underdeveloped European markets. With growing investment in AI and data, MGAs are increasingly differentiated by their ability to deliver tailored, tech-enabled insurance solutions.
View the full report here: MGA Opinion Report 2025
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