Viewpoint: Strong In-House Claims Functions Help Build Trust in MGA Sector

The managing general agent (MGA) market is in the spotlight as one of the most agile and innovative arrows of growth for the insurance sector. But as with any arrow, direction and precision matter. Fired without the right discipline, it can just as easily miss its target – or worse, cause unintended harm.

A new report from Aon estimates that, globally, MGAs wrote $109.2 billion in direct premiums in 2024, representing growth of a staggering 242% over the past four years.

This growth comes with scrutiny. MGAs are no longer niche intermediaries flying under the radar. They now represent a significant proportion of the global risk transfer chain. With that growth, reputation matters, and the ability of MGAs to handle claims effectively will increasingly determine whether the sector is seen as a trusted steward of capacity or simply a distribution channel for carriers.

Claims as Foundation of Credibility

Underwriting may be the front door of any MGA, but claims is where reputations are built, or lost. Carriers, brokers and ultimately clients judge performance not on the slickness of distribution platforms or the sophistication of models, but on whether valid claims no matter how complex are assessed and paid fairly and promptly. More MGAs are now recognizing that having in-house claims expertise not only ensures consistency and accountability but also strengthens relationships across the insurance value chain.

In European specialty lines such as financial lines, regulatory notifications remain a major theme, particularly in Germany and the Netherlands where litigation is frequent. While many of these matters never reach excess layers, they still need careful monitoring. Brokers often notify the entire program, and MGAs with in-house claims teams can provide carriers with visibility across that program and confidence that issues are being professionally managed.

Marine is another area where MGA involvement is evolving. As portfolios grow, claims are becoming more prominent and complex, requiring expertise that understands both local jurisdictions and the international nature of maritime commerce. The ability to respond quickly, in local languages, is increasingly valued by brokers and clients.

Cyber claims, meanwhile, remain modest in volume compared with financial lines but are highly visible when they do occur. Notifications may involve multiple parties, regulators and cross-border considerations. MGAs with dedicated claims capability are better placed to navigate that complexity and ensure that carriers and clients alike receive accurate information in real time.

Bridging Underwriting and Claims

The true strength of an in-house MGA claims function lies not only in loss management but in the feedback loop it creates. Claims teams see trends first-hand: the frequency and severity of events, emerging jurisdictions of concern, or new types of notifications. Feeding this intelligence back to underwriters helps refine risk selection, pricing and even product design.

For example, MGA Alta Signa tracks the lifecycle of notifications closely. Out of 204 financial lines notifications it has seen during the past five years, only 83 remain active, which is a strong closure rate in complex lines of business. That data is shared with underwriting colleagues to sharpen decision-making and ensure future resilience. Unlike outsourced claims functions, which can lead to slower response times and a lack of nuanced understanding of client relationships, an MGA’s in-house claims capability ensures tighter control, faster resolution, and better feedback loops between claims and underwriting – and when done well, this is a key differentiator for MGAs operating in specialist markets.

Technology and People

Technology is playing an ever-greater role in claims, from diary management tools to categorization that allows for trend analysis. But specialist expertise is equally important. In Europe, the ability to communicate in local languages and understand cultural expectations around claims handling cannot be overstated. Trust is built not just through speed of settlement but also through empathy, clarity and consistency in communication.

The Aon report reminds us that MGAs are now a $100 billion-plus global force. With that comes responsibility. If the sector is to maintain and build trust, claims cannot be an afterthought, they must be at the core of the MGA model.

A recent MGA Opinion Report from Clyde & Co. and the UK MGA trade body the Managing General Agents’ Association underscores the challenge: more than three-quarters (77%) of MGAs say the claims process with carriers needs improvement, up from 59% in 2023. Strikingly, 91% of carriers agree. Both sides are aligned in recognizing that claims can be the weak link in many partnerships.

The solution lies in MGAs stepping up to own this critical function. By investing in in-house claims teams, supported by the right technology and cultural expertise, MGAs can demonstrate that they are both distributors and true custodians of capacity. The trajectory of the sector will be defined by investments in best-in-class dedicated claims functions and talent.

Underwriting may be the bow, but claims is the fletching that keeps the arrow true in flight. Without it, growth risks veering off course. With it, MGAs can hit their target: cementing their role as global trusted, indispensable partners for carriers, brokers and clients alike.

Topics Claims Insurance Wholesale