What is a managing general agent (MGA)?

A plain-English definition for wholesale insurance producers, and for the retail producers they work with.

The short answer

A managing general agent (MGA) is a specialized agent or broker that an insurer has authorized to underwrite and, depending on its agreement, bind coverage on the insurer's behalf. Depending on the contract, an MGA may also issue policies, appoint producers, handle claims or arrange reinsurance. Binding authority is the key difference between an MGA and a wholesale broker.

How it works.

An insurer signs an agreement with the MGA that spells out what it can write: classes of business, territories, limits and underwriting guidelines. Within those limits, the MGA quotes and binds without sending each risk back to the insurer. MGAs usually focus on specialized lines and typically work with retail agents and wholesale brokers rather than directly with insureds.

State laws, many based on an NAIC model act, set licensing and contract requirements for MGAs. A Lloyd's coverholder is a similar arrangement, authorized to bind on behalf of Lloyd's syndicates, and is often an MGA.

Why it matters to wholesale producers.

For a wholesale producer at an MGA, speed is a selling point: you can quote and bind within your authority without waiting on the carrier. Retail producers who learn that you can turn a quote quickly are more likely to send the next account.

For retail producers: working with an MGA can mean faster quotes on niche classes, because the underwriting decision sits with the MGA rather than at the insurer.

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Sources (opened October 23, 2026): IRMI: managing general agent; WSIA: An introduction to the surplus lines insurance market (2026); IRMI: coverholder. General information, not legal or tax advice. Requirements vary by state.

Questions.

What is the difference between an MGA and a wholesale broker?

An MGA can bind coverage on behalf of an insurer under a written agreement. A wholesale broker without binding authority submits risks to underwriters, and the insurer decides whether to bind.

Do MGAs only write surplus lines?

No. MGAs often write specialty and surplus lines business, but an MGA can work with admitted insurers too.

Do MGAs work with consumers directly?

Rarely. Most MGAs receive business from retail agents and wholesale brokers.