The Power of Partnership: Regional Brokers and MGAs Shaping the Future of Insurance Distribution - Pro Global

The Power of Partnership: Regional Brokers and MGAs Shaping the Future of Insurance Distribution

By Danny Maleary

MGA

May 9, 2025

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MGAs and brokers offer complementary value in the ecosystem of insurance, each playing a distinct and vital role in insurance distribution. MGAs bring specialist underwriting expertise and product innovation, while brokers offer trusted client relationships, and deep market insight. Far from replacing brokers, MGAs rely on strong partnerships to ensure that tailored insurance solutions reach the right markets – particularly SMEs that may otherwise struggle to access appropriate coverage.

The Strength of the MGA-Regional Broker Relationship

Regional brokers have long been the backbone of the UK’s insurance distribution network, serving local businesses with a deep understanding of their clients’ unique needs. For MGAs, these brokers offer invaluable market access, allowing specialist underwriting capabilities to reach underserved or niche segments.

Recent research from IBISWorld highlights the continued expansion of the UK insurance agents and brokers sector, with revenues rising at an annual rate of 8.5% to reach £21.4 billion. This growth underscores the critical role brokers play in facilitating insurance transactions and advising clients, particularly in the SME market.

However, the evolving risk landscape demands an agile and tailored approach to underwriting – a nimbleness that many large insurers struggle to meet. This is where MGAs thrive, leveraging specialist expertise and data-driven insights to develop products that address emerging risks. By collaborating with regional brokers, MGAs can ensure that these bespoke solutions reach the businesses that need them most, and match the underwriting appetite of their capacity backers.

The Importance of a Streamlined Claims Process

As MGAs continue to evolve, many are developing in-house claims functions to enhance service levels and provide a more seamless experience for policyholders. However, clarity over claims responsibility – whether it sits with the broker, MGA, or insurer – is crucial. continued focus on ensuring clear claims responsibility is essential for good customer outcomes.

To maintain trust and efficiency in the insurance value chain, claims handling must be streamlined, ensuring that policyholders know exactly where to turn when they need support. Fast, transparent, and efficient claims processes should be a priority for all stakeholders, reinforcing the importance of well-defined roles and collaborative service delivery between brokers, MGAs, and insurers.

The Role of Advocacy and Regulatory Clarity

Despite the opportunities within the MGA sector, regulatory uncertainty remains an ongoing challenge. The introduction of the Financial Conduct Authority’s (FCA) Consumer Duty and recent scrutiny around commission disclosure in multi-occupancy buildings insurance have highlighted the need for greater clarity in the MGA model.

The debate on transparency and commission disclosure has raised fundamental questions about the role of MGAs within the insurance value chain. Are MGAs to be treated as brokers, or should they be recognised as agents of insurers? Without clear regulatory distinctions, the industry risks confusion, inefficiencies, and unintended compliance burdens on MGAs.

This is where the Managing General Agents’ Association (MGAA) has played a vital role. Through active engagement with the FCA, the MGAA has helped clarify: under the Insurance Conduct of Business Sourcebook (ICOBS) 6A.7, commission disclosure requirements apply specifically to brokers, not MGAs acting as agents of insurers. This recognition is a significant win for all in the insurance sector and clarifies each distinct position in the insurance ecosystem.

Here at Pro MGA Global Solutions, we call on the MGAA to continue this important advocacy work to ensure that MGAs can operate within a framework that supports innovation while maintaining regulatory compliance.

A Call to Action

As we look ahead, thriving MGAs and regional brokers across the UK are embracing the power of partnership. The strength of the regional broker network is instrumental in ensuring that specialist underwriting capabilities reach businesses that might otherwise struggle to find appropriate cover. At the same time, MGAs are well positioned to champion transparency, best practices, and a commitment to delivering value to policyholders that will ultimately benefit from a more agile, joined-up insurance market.

This piece was originally published in the April issue of The Voice, read it here

Meet our expert

Name: Danny Maleary
Job title: CEO, Pro MGA Global Solutions

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