Premiums generated through managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) reached $89.9 billion in 2024, a 15% year-over-year increase and the fourth consecutive year of double-digit growth, according to a recent AM Best report.
The report noted that the number of MGAs producing $500 million or more in direct premiums written (DPW) rose to 19 in 2024, up from 12 the year prior. Six of those MGAs exceeded $1 billion in DPW, doubling the number from 2023.
David Blades, associate director, Industry Research and Analytics, AM Best, said, “The premium momentum by MGAs writing specialty commercial lines of coverage shows no sign of slowing down despite average account pricing moderating or even declining in certain lines such as workers’ compensation, professional liability — particularly directors and officers and employment practices liability — and cyber liability.
“With certain market segments experiencing moderated pricing, future growth rates could be impacted.”
The industry has also shifted toward non-exclusive MGA relationships, which grew to an estimated 57% of U.S. property/casualty direct premiums written in 2024, up from 33% in 2017. This trend indicates that insurers increasingly value diversified distribution, leveraging broader networks to expand market reach and hedge underwriting risk concentrations.
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Dawn Walker, associate director, Industry Relation (DUAE), said, “Non-exclusive MGA arrangements give carriers greater flexibility to adjust their portfolios in response to loss trends, pricing cycles, or changes in reinsurance availability, allowing for easier exits by underperforming segments of their portfolio.”
In response to growth in the DUAE segment, AM Best introduced its Best’s Performance Assessment in 2022—an industry-first tool providing an objective, independent opinion on a DUAE’s ability to perform services on behalf of its insurance partners.
AM Best maintains a positive outlook on the DUAE market segment, driven by sustained growth and niche expertise.
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