managing general agent (MGA)
A wholesale insurance intermediary with the authority to accept placements
from (and often to appoint) retail agents on behalf of an insurer. Managing
general agents generally provide underwriting and administrative services, such
as policy issuance, on behalf of the insurers they represent. These arrangements
are most common in the surplus lines marketplace. Typically, MGAs market more
unusual coverage, such as professional liability, for which specialized expertise
is required to underwrite policies. MGAs benefit insurers because such expertise
is not always available within the company and would be more costly to develop
on an in-house basis.
Links for IRMI Online Subscribers Only:
PLI IV.J,
XV.C