A new research report by ReSource Pro and InsurTech NY reveals insights into the evolving role of insurtech managing general agents (MGAs) in the insurance sector.
The findings highlight that 53% of insurtech MGAs rely on custom-built policy administration systems, while only 7% report annual burn rates exceeding $3 million.
Additionally, insurtech MGAs are achieving a one-to-one ratio between capital raised and gross written premium, with 80% creating proprietary products focused on specialty lines, liability coverage, and emerging areas like parametric and on-demand insurance.
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The report examines how MGAs are shaping business models, product delivery, underwriting practices, and technology adoption. It underscores their efforts to identify growth opportunities in the property and casualty market while enhancing customer access to traditional insurance products.
"While significant attention has been given to advancements in insurance technology, the role of MGAs within this ecosystem has remained underexplored," said Mark Breading, ReSource Pro senior partner.
The report outlines the lifecycle of insurtech MGAs, encompassing capital investment, product development, and growth through distribution and partnerships. According to Breading, insurtech MGAs are driving change by utilizing advanced technologies, new insurance models, and their growing influence in the market.
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The study identifies key trends, including carrier support in fostering MGA innovation, the emergence of digital-first MGAs equipped with bespoke technology, and the challenges these organizations face in selecting suitable technology partners.
Distribution strategies are also explored, revealing that retail agents remain the largest channel, supplemented by direct-to-consumer models and broker partnerships.
Additionally, the report examines new insurance models like parametric and embedded insurance, which are reshaping claims and product delivery processes, particularly for catastrophe-related risks.
David Gritz, co-founder and managing director of InsurTech NY, stated that the organization’s mission is to help the industry leverage digital transformation for efficiency and growth.
"We’re honored to partner with ReSource Pro on this research, which sheds light on how insurtech MGAs are driving innovation and delivering tailored solutions that meet the evolving demands of today’s dynamic market," said Gritz.
The report defines “insurtech” as MGAs established in 2010 or later and draws on survey data from 50 MGAs, as well as interviews and ongoing collaboration with industry stakeholders.
How do you see insurtech MGAs shaping the future of insurance? Share your thoughts in the comments.
