What role does a Managing General Agent (MGA) serve in the insurance industry?

A Managing General Agent (MGA) serves a vital role in the insurance industry by providing support services to insurance agents. MGAs operate as intermediaries between insurers and agents, enabling insurance carriers to delegate certain functions such as underwriting, binding coverage, and managing claims. This allows MGAs to effectively train and support independent agents, giving them the tools and resources to sell insurance products more efficiently.

By providing these support services, MGAs help streamline operations, assist in marketing efforts, and enhance overall efficiency within the distribution of insurance products. This role is especially important for smaller insurance companies that may not have the resources to fully manage a large sales force or the complexities of underwriting and claims processing.

The other roles mentioned, such as underwriting policies or having authority to approve claims, are typically functions associated with the insurance companies themselves rather than the MGA's responsibilities. While MGAs may facilitate certain aspects of underwriting or claims processing, their primary focus remains on supporting and empowering the agents who sell insurance.