As CAMGA continues to engage with brokers, insurers, regulators, and technology providers across the country, one theme keeps surfacing: many insurance professionals still don't have a clear picture of what managing general agents (MGAs) actually do within the Canadian marketplace.
I often open presentations with a simple exercise. I ask the audience to rate their own understanding of MGAs on a scale of one to 10, one being very limited knowledge, 10 being expert-level comprehension. It's anecdotal rather than scientific, but the results have been remarkably consistent. Across a wide range of industry audiences, the collective self-assessment tends to land low, often closer to a four than a 10.
That gap matters more than it used to. MGAs continue to play an increasingly important role in the distribution and underwriting of insurance products across Canada, and the sector has grown substantially over the last several years. Depending on the line of business and market segment, industry estimates suggest MGAs now account for between 10 and 20% of the Canadian commercial insurance market. Collectively, we believe the sector represents more than $4 billion in annual gross written premium.
Despite that growth, confusion persists about what an MGA actually does and how the role differs from other participants in the value chain. Many new entrants to the industry can readily explain what a broker does, or what a carrier does. The MGA model sits between those two, and that in-between position is exactly where the uncertainty about responsibilities, authority, and value proposition tends to creep in.
As regulators and industry leaders sharpen their focus on professional competency, I think a stronger foundational understanding of MGAs is becoming essential, not optional. Recent conversations within the insurance community have underlined the need for brokers to deepen their understanding of the commercial marketplace and the entities operating within it, and I see a clear opportunity to make sure MGAs are properly represented in the industry's learning materials.
Pete Tessier, CAMGA's president, put it well: "A newly licensed broker should be able to clearly explain the difference between an MGA and an insurance carrier. That knowledge is becoming essential to effectively serving clients and navigating today's insurance marketplace."
That's why we're developing a Reference Guide aimed specifically at entry-level insurance professionals. It won't be an exhaustive technical manual. Our intent is for it to be practical, accessible, and easy to fold into existing educational programs, covering the role of MGAs, delegated authority, the relationships between brokers, insurers, and MGAs, and the value MGAs bring to specialty and commercial insurance markets.
As Tessier noted, "our plan is that this guide could be used and considered by provincial regulators, trade associations, and education providers for incorporation into, or as a companion resource to, future competency profiles and educational programs."
For a segment of the industry that keeps growing in size and influence, moving the collective understanding from a four out of 10 to something much higher isn't just a nice-to-have. It's a step the Canadian insurance sector needs to take.
