What is an MGA

Definition

A Managing General Agent (MGA) is a producer entity to which an insurer has delegated underwriting (binding) authority — and sometimes claims-settlement authority — within agreed guidelines. That delegated authority is what separates an MGA from an ordinary producer. STABLE

An ordinary producer sells the carrier’s policies.
An MGA operates a slice of the carrier’s pen: it risk-selects, rates, binds, issues, and (sometimes) adjusts claims on the carrier’s behalf, for a defined class or program. STABLE

This is the mechanism by which Glacis would actually “underwrite” — not by becoming an insurer, but by holding delegated authority from one.

MGU (Managing General Underwriter) — an underwriting-focused variant of an MGA; emphasis on the risk-selection/pricing function. STABLE
Program business / program administrator — a packaged niche product (a “program”) run on a carrier’s paper for a specific class of risk. A Tech-E&O-for- healthcare-AI program is exactly this shape. STABLE
Fronting carrier — an admitted carrier that “lends its paper” so the program can be written, often passing most of the risk to reinsurers. See 04 Reinsurance & capacity. STABLE

How an MGA makes money

The contingent commission is the strategic hinge: if the MGA’s book runs a low loss ratio (few losses relative to premium), the MGA earns more — and a profitable book attracts more carrier/reinsurer capacity. The loss ratio is the number. See 03 Loss ratio & combined ratio. STABLE

This is the cleanest connection from “Glacis software” to “money”: better evidence → better risk selection → lower loss ratio → higher profit share. See 01 The flywheel.

The license prerequisite

An MGA must hold producer licenses (both the individual DRLP and the entity, in the relevant line — Casualty). This is exactly why licensing is Step 1: you can’t hold delegated authority you aren’t licensed to exercise. STABLE

MGAs are separately regulated in many states

Beyond the base producer license, many states separately regulate MGAs (often via the NAIC Managing General Agents Act, Model #225). That can add: STABLE

MGA registration with the DOI,
a bond requirement,
a statutorily compliant written contract with the carrier (defining authority, underwriting guidelines, commissions, audit rights, termination).

The stack to get there

Becoming an MGA is the top of a stack of prerequisites:

The next page walks that stack in order.

→ 05 The delegated-authority stack

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