Briefing: Why MGAs should be brokers’ best friends

For me, delighting our clients has always been the name of the game as an insurance broker.

The great advantage of brokers – as opposed to a more direct, online insurance service – is that we are constantly thinking how best to tailor our service to the specific needs of our customers, however unique these may be.

In my last column, for example, I wrote about the role we can play in improving safety for young drivers, while also answering questions about how bikers aged over 80 can get insurance.

However, brokers do not operate in a bubble. Giving the absolute best service to our customers means forging high quality partnerships.

This brings me neatly to a fascinating conversation I had with Mike Keating, chief executive at the Managing General Agents’ Association (MGAA), in September 2025 for the trade body’s MGAA Conversations podcast.

Back in the day, some industry professionals might have been a bit sniffy about MGAs. But, in recent time, these businesses have really been coming into their own. Today, they are lean, tech enabled and deeply specialised, often bringing underwriting authority, unparalleled product innovation and speed to market.

So, why does this matter?

Complementary skill sets

The rise of MGAs matters for a number of reasons.

For example, imagine you are the owner of a non-standard home, like a thatched cottage. The claims handling here would be very different compared to a two bedroom terraced house with a tiled roof.

Suddenly, as a customer, you find yourself in a niche that is not always well served by the big providers – especially in circumstances where insurers no longer offer the cover they once did.

This where MGAs can step in. While brokers bring something unique to the insurance value chain – such as distribution, access to client segments and deep customer understanding – MGAs are the ones with sophisticated data analytics, artificial intelligence driven insights and the ability to assess future and emerging risks.

Brokers and MGAs complement each other perfectly. Together, we can build some truly innovative products centred on customers.

Making new friends

Our world is moving at breakneck speed. Technology is transforming every aspect of our lives. Clients’ needs are constantly changing – even my 80-year old mum is now embracing ChatGPT.

People want smarter solutions. They want to engage with firms that are more responsive. They want choice. And whether it is cyber and parametric covers or environmental, social and governance (ESG) aligned products, MGAs can help – all while maintaining underwriting discipline and compliance rigour.

Of course, building these strategic partnerships takes time.

When we work with MGAs at Howden, we seek those that are culturally aligned to our business. That share our values. That are transparent about risk appetite, claims handling and capacity relationships. Firms that embrace excellent, two-way communication.

From my experience, once you have got a relationship established with an MGA, then you can start heating up cold spots – finding opportunity where mass market capacity is lacking.

Answering Keating’s questions reminded me of the importance of making MGAs our best friends.

In an ever-changing world, MGAs will not only help us to continue to delight our customers, but additionally offer them a service that is truly like no other.