Market & Policy · Insurance Term
Managing General Agent (MGA)
Definition
A managing general agent (MGA) is a specialized firm that an insurance company authorizes to underwrite, price and sometimes issue policies on its behalf. Agents often reach an MGA for harder-to-place risks, such as coastal property or certain habitational accounts.
In Plain English
An MGA acts like an underwriting office for one or more insurers. It may set rates, approve or decline risks, bind coverage and handle some policy service. The insurer still carries the risk and pays claims, sometimes with claims handled by a third party.
Your agent may work with an MGA directly or through a wholesale broker. MGAs are common in surplus lines insurance, where the issuing company is often a non-admitted insurer. Some MGAs focus on one niche, such as gas stations or builders risk.
From your side, an MGA-placed policy works like any other. The policy names the insurance company, and that company's financial strength is what stands behind it.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a coastal apartment complex has trouble finding standard coverage. The owner's agent works with an MGA that specializes in coastal habitational property and places the policy with a surplus lines insurer.
Why It Matters for Texas Property Owners
Texas regulates managing general agents and generally requires them to be licensed (Ins. Code §4053.051). You can check licenses on the Texas Department of Insurance website.
What to Watch For
- Find the name of the insurer, not just the MGA, on your declarations page.
- Ask who handles claims and how to report one.
- Check the insurer's financial strength rating.
- Ask whether the policy is admitted or surplus lines.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write