Novidea Provides Insights on the Five Key Challenges MGAs Navigate Amid Insurance Industry Evolution

April 29, 2025 at 03:00 AM EDT

--News Direct--

Novidea, provider of the cloud-native insurance management platform for brokers, agents, MGAs, and hybrid fronting carriers, today released new insights on the evolving MGA market, spotlighting the operational challenges shaping the sector’s future. Drawing on industry research, customer feedback, and engagement with global insurance stakeholders, Novidea experts identified the critical obstacles MGAs must overcome to sustain growth.

MGAs are pivotal in bridging coverage gaps and driving market expansion. Research from Conning reveals that MGA premiums in the U.S. surpassed $102 billion, while The Actuarial Post reports $5.7 billion in the UK — marking continued momentum. However, as demand surges, MGAs have a growing business opportunity and need to navigate complexity, maintain agility, and balance growth with long-term profitability.

“MGAs play a critical role in managing emerging risks and fueling market growth, but operational inefficiencies and fragmented and/or legacy technologies continue to hinder their full potential,” said Jeff Heine, Chief Revenue Officer at Novidea. “To thrive in this environment, MGAs must equip themselves with the tools and strategies to address these challenges and seize new opportunities. Novidea delivers advanced analytics and actionable insights that translate into real-time business intelligence, enabling MGAs to drive growth.”

Five key challenges facing MGAs today are:

Limited Business Insights – Poor data management, limited access to quality data and deficient reporting capabilities prevent many MGAs from gaining insights into business performance, making it hard to make smart decisions for the future, satisfy capacity providers and meet growth targets.
Fragmented Systems and Collaboration Challenges – Relying on disconnected platforms complicates operations, reduces collaboration, and can cause ineffective communication between insurers, brokers, and third-party solutions providers. The inability to streamline and access real-time data across departments, anytime, from anywhere can hold MGAs back from optimally managing their businesses.
Core Platform Limitations – Many MGAs run the risk of adopting outdated systems that lack critical functionalities and flexibility, limiting their ability to adapt to business opportunities and possibly falling behind competition.
Regulatory Compliance – Keeping pace with evolving regulations introduces significant operational risks for under-resourced MGAs.
Need for Market Adaptability – Many MGAs lack agile workflows and tools necessary to efficiently launch new commercial lines of business and adapt to changing conditions without disrupting current operations.

MGAs must find innovative ways to overcome these obstacles while maintaining focus on client needs and market opportunities. A modern insurance management platform is essential for MGAs looking to thrive in a competitive market. These platforms enable organizations to scale efficiently, respond swiftly to market changes, and enhance service delivery, positioning them for sustained success in the evolving insurance landscape.

Novidea's platform fully streamlines front, middle, and back offices, boosting operational efficiency while providing a seamless digital experience. MGAs can manage anything from submissions, quote-to-bind, policy issuance, and premium processing, to claims and accounting in one platform. Flexible Bordereaux production and value-driven reporting means clients can easily differentiate and demonstrate value to capacity providers and trading partners.

Novidea’s open API infrastructure means you can tailor your business by adding functionality, capabilities, and services as you grow, capitalizing on a continuously evolving landscape.

MGAs benefit from a 360-degree view of any account or portfolio of business, making it easy to make fast, accurate and informed business decisions based on valuable data insights across every phase of the insurance supply chain.

Come meet with Novidea's experts at TIN Delegated Authority Strategy Day on 29th April in London or at Target Markets on May 6-8 in Dallas, TX.

About Novidea

Novidea is the leading Insurtech provider of a cloud-native, data-driven insurance management system. With its open API architecture, Novidea enables brokers, agents, MGAs, and carriers to modernise and manage the customer journey end-to-end and drive growth across the entire insurance distribution lifecycle. Novidea's streamlined and automated platform fully integrates front, middle, and back offices. The Novidea platform boosts operational efficiency while providing a seamless digital experience for team members and customers alike. Insurance businesses benefit from a 360-degree view of customers and policies and can access data and actionable insights anytime, anywhere, and on any device. In 2024, Novidea acquired Docomotion, a leading Document Generation platform. The company currently serves more than 350 customers worldwide.