Managing General Agent (MGA)

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Managing General Agent (MGA) A managing general agent (MGA) or a managing general underwriter (MGU) is a specialised type of insurance agent or broker that has been granted underwriting authority by an insurer, according to the International Risk Management Institute (IRMI), and can administer programs and negotiate contracts for an insurer. An MGA’s functions can include binding coverage, underwriting and pricing, settling claims, and appointing retail agents in a certain region, all of which are typically carried out by insurers. At its core, the MGA manages all or part of the insurance business of an insurer and acts as an insurance agent or broker for the insurer, while working as the intermediary between insurers and agents, and/or insureds. MGA are not employed by the insurer, but rather work independently. An MGA typically acts as a middleman between the insurer and the insured. For example, if you have a car accident, your MGA would contact the insurer on your behalf to handle any claims. MGAs earn a percentage of the commission that would typically go to the insurance agent. If MGAs share some risk with the insurer, they can also participate in underwriting profit or loss. Most at time we confuse a MGA to a broker a big difference between broker and MGA is that: an insurance broker acts on behalf of the customer while an MGA acts for an insurer (although they also work closely with customers to find them a good deal). MGA provide a more better customer service. This is because they are typically smaller than a traditional insurance broker and can offer you a more personal level of service. They will also be more familiar with the products they offer, which can make it easier to get the coverage you need. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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