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

Contingent compensation can depend on agreed loss-experience measures and contract terms. Profitability may support a capacity discussion, but neither a low loss ratio nor an evidence packet guarantees additional compensation or capacity. STABLE

Glacis’s earlier evidence-to-economics chain is a hypothesis to validate. Scoped evidence, insurer acceptance, loss improvement and compensation are separate stages. See the evidence-to-underwriting loop.

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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