Global trends & promising outlook for MGA & MGU revenues in 2023: Insuramore



Managing General Agents (MGAs), Managing General Underwriters (MGUs), and cover-holder groups have amassed approximately USD 23.9 billion in revenues worldwide in 2023, according to a recent report by industry analysis firm Insuramore.

technology-global-economyThe bulk of this revenue, ranging between 70% and 75%, stemmed from direct commercial P&C insurance, while the remaining portion was attributed to direct private P&C, life and health insurance, and reinsurance.

This represents an annual growth rate of over 20% compared to 2022, outpacing the growth rate of the world’s insurance broking sector. In 2023, MGAs are estimated to have written over USD 200 billion in premiums globally.

Brown & Brown clinched the top spot globally in 2023, with MGA revenues approximately double those of the second-ranked group, Amwins. Ryan Specialty Group, TIH, and Gallagher followed closely in the ranking.

The top five groups collectively accounted for around 17.6% of global MGA revenues in 2023, underscoring the sector’s fragmentation. With over 3,000 enterprises involved in MGA activity worldwide, over 1,650 are projected to write premiums exceeding USD 10 million in 2024.

Ownership-wise, 58 of the top 300 groups were broker-owned, 31 were insurer-owned, and the rest were independent. Munich Re led insurer-owned groups in revenue from proprietary MGA business, while NSM Insurance Group topped the list of independent groups.

The US hosted the most MGA groups in the top 300 in 2023, followed by the UK, Canada, the Netherlands, and Germany. Despite overall growth, some MGA enterprises ceased trading in 2023, particularly in fields like cyber insurance and niche segments such as cannabis and pet insurance.

Despite these challenges, the increasing demand for bespoke and innovative insurance cover supported by technology augurs well for the global MGA market’s future.

The post Global trends & promising outlook for MGA & MGU revenues in 2023: Insuramore appeared first on ReinsuranceNe.ws.

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