The UK's managing general agent (MGA) sector entered the second half of 2026 from a position of strength despite a softening market, according to Mike Keating, chief executive of the Managing General Agents' Association (MGAA).
Speaking to Insurance Business on the sidelines of the MGAA Annual Conference in London, Keating said demand remained robust, but softer pricing was placing renewed emphasis on underwriting discipline and long-term broker relationships.
Keating described the sector as being "in very rude health", citing broker support, expanding sources of capital and operational agility as reasons for his confidence. At the same time, he acknowledged that sustaining growth would require firms to resist chasing premium at the expense of underwriting quality.
Keating said the conference reinforced a consistent message from brokers: service remains the defining advantage of the MGA model.
Keating said one broker on a conference panel repeatedly highlighted the service levels and access to decision-makers provided by MGAs as key reasons they remained valuable to brokers.
He also rejected suggestions that opportunities for further MGA expansion are becoming constrained. While market consolidation has reshaped parts of the distribution landscape, Keating pointed to the UK's roughly 2,000 regional and independent brokers as evidence that demand for specialist underwriting and responsive decision-making remains intact. According to feedback shared during the conference, many smaller brokers continued to view MGA service levels as materially stronger than those available from insurers.
Keating said the mix of capital supporting MGAs is likely to change over the next few years. Referring to comments from keynote speaker John Lloyd OBE, chairman of McGill and Partners, who cited a global MGA premium pool of around $150 billion, he said insurance-linked securities, institutional investors and other alternative capital providers are expected to play a larger role alongside established reinsurance capital.
"There will still be traditional players," Keating said, "but without doubt there will be other forms of alternative capital which will be maximising your return on capital and financial engineering, which will be really attractive for MGAs to be attached to."
He said the growing diversity of capital should broaden the options available to MGAs as the market continues to evolve.
While optimistic about the sector's long-term prospects, Keating was clear that trading conditions have become more challenging.
"We cannot ignore the headwinds which are in place," he said, describing a market where rates were continuing to soften – a trend already shaping how UK brokers are positioning for the rest of 2026.
Rather than chasing premium in a softer market, Keating said MGAs would need to remain disciplined, echoing discussion during the conference about the risks of expanding in what one panel described as "a rubbish market".
He said MGAs were working hard to retain existing business as policies came up for renewal, while remaining alert to changes in insurer appetite. He cautioned that insurers expanding underwriting appetite primarily to pursue premium growth in a soft market often retrenched once pricing conditions hardened, creating uncertainty for brokers and clients.
Keating said MGAs were well placed to adopt artificial intelligence because many operate with simpler technology estates than larger insurers, allowing them to implement new capabilities more quickly and with greater focus.
He urged firms to take a targeted approach to AI, defining clear commercial objectives before deploying new tools.
"Understand exactly what your return on investment is which you're expecting the AI to do, and then execute it quickly," he said.
He added that poor-quality data would limit any gains. "If your data is not in a good place now… then you're going to probably not get the benefit of the AI at all."
Alongside technology, Keating said close broker relationships would remain central to the sector's competitive position. He also said comments from Andrew Ruddle, interim head of insurance market analysis and policy at the Financial Conduct Authority, left him confident the regulator would support, rather than hinder, the sector's continued development.
