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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Best's Market Segment Report: MGA Premiums Showed Double-Digit Growth for Fourth-Straight Year in 2024

Year-over-year premium generated through managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) grew by 15% to $89.9 billion in 2024, a fourth consecutive year of double-digit percentage increases, according to a new AM Best report.

The Best’s Market Segment Report, “MGA Premiums Show Double-Digit Growth for a Fourth Consecutive Year,” notes that National Association of Insurance Commissioners (NAIC) reporting regulations require that companies disclose individual MGA premium data only for those MGAs whose premium constitutes more than 5% of the risk-bearing entity’s policyholder surplus. The number of unique MGAs that met the threshold for their premium to be reported and considered for this report exceeded 700 – about 100 more than the previous year. However, market research indicates that the total number of MGAs operating in the U.S. market exceeds 1,000. The growth in the number of MGAs can be partly attributed to new market entrants with expertise in niche markets, which is to insurers with capacity and appetite for specialty risks.

“The premium momentum by MGAs writing specialty commercial lines of coverage shows no sign of slowing down despite average account pricing moderating or even declining in certain lines such as workers’ compensation, professional liability — particularly directors and officers and employment practices liability — and cyber liability,” said David Blades, associate director, Industry Research and Analytics, AM Best. “With certain market segments experiencing moderated pricing, future growth rates could be impacted.”

According to the report, the number of MGAs that produced $500 million or more in direct premiums written increased to 19 in 2024 from 12 in the previous year, with six of those carriers surpassing the $1 billion DPW mark, doubling the total of three from 2023. The industry also has pivoted toward non-exclusive MGA relationships, growing to an estimated 57% of U.S. property/casualty direct premiums written in 2024 from 33% in 2017, an indication that insurers increasingly value diversified distribution and are leaning on broader networks to expand market reach and hedge underwriting risk concentrations.

“Non-exclusive MGA arrangements give carriers greater flexibility to adjust their portfolios in response to loss trends, pricing cycles, or changes in reinsurance availability, allowing for easier exits by underperforming segments of their portfolio,” said Dawn Walker, associate director, Industry Relation (DUAE).

In response to the DUAE segment’s growth, AM Best introduced its Best’s Performance Assessment in 2022, providing an industry-first tool providing an objective, independent opinion of a DUAE’s ability to perform services on behalf of its insurance partners. AM Best maintains a positive outlook on the DUAE market segment, owing to the resilience of these organizations as they have effectively used strategic investments in technology and talent to expand premiums in the specialty commercial market.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354351.

AM Best will host an online market briefing to discuss the DUAE segment on Thursday, June 5, 2025, at 10:00 a.m. EDT. To register, or for more information, please go to the event and registration page.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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