What is the role of a managing general agent?

The role of a managing general agent (MGA) primarily involves working for multiple insurance companies, functioning much like a brokerage. MGAs have the authority to underwrite policies, manage risk, and sometimes even handle claims, but they do so on behalf of the insurance companies they represent. This capacity allows them to act as intermediaries between the insurers and the agents or brokers, providing a wider range of products and services to both parties.

By representing several insurers, MGAs can offer diverse options tailored to the specific needs of clients and agents, enhancing their ability to meet market demands efficiently. This flexibility also enables them to leverage relationships with various insurers to secure competitive rates and coverage options for their clients.

While a managing general agent may have knowledge of compliance regulations, this aspect is not the primary focus of their role. Compliance is indeed important but serves as a background function to ensure that all dealings with the insurers and clients adhere to the legal standards required. The primary emphasis remains on their capacity to operate across multiple insurance providers, making them key players in the insurance industry.