UK carriers plan to up MGA capacity, survey shows

By Edward Carron

July 3 - (The Insurer) - More than half of carriers intend to increase the amount of capacity they deploy through MGAs over the next two years, according to a survey by law firm Clyde & Co published on Thursday.

The 2025 MGA Opinion Report, produced in collaboration with the Managing General Agents' Association, shows 57% of carriers plan to increase capacity allocation to MGAs over the next two years.

Close to half (46%) said they had increased their capacity allocation to MGAs over the past 12 months, while 74% said they had not reduced their deployment of capacity in response to rising capital costs.

Clyde & Co surveyed 92 people for the report, of which 57 were from MGAs and 35 from carriers. The majority of those surveyed (80%) were based in the UK.

Carriers are also looking to provide capacity to MGAs to offer new lines of business in 2025, with 29% of respondents targeting specialty lines, 20% financial lines and 17% property.

Dissatisfaction with the claims process remains a key challenge, with 77% of MGAs and 91% of carriers seeking improvements.

Regulatory demands, particularly concerning the Consumer Duty and fair value, were cited by 46% of MGAs and 34% of carriers as barriers to entering new markets or launching products.

Around two-thirds of respondents, 65% from MGAs and 66% from carriers, believe AI will improve decision-making and operational performance. MGAs are leveraging technology for automated underwriting and faster claims triage, aiming to deliver smarter, scalable solutions, according to the report.