How MGAs work
An MGA operates under a binding authority or program agreement that sets its classes, territories and limits, and it reports what it writes to its capacity providers. The London market equivalent is usually called a coverholder or managing general underwriter.
Why MGAs exist
MGAs give carriers specialist underwriting and distribution in niches they could not serve efficiently themselves, and they give expert underwriters a way to build a business without becoming a carrier.
Where the operating load sits
An MGA runs lean, so its economics depend on how much intake, clearance, quoting and bordereau reporting a small team can handle. Much of that work is operational rather than underwriting judgment, which makes it a natural target for automation.
Where automation helps
An MGA's most important systems are intake, which turns broker submissions into structured data, and bordereaux, which turn policy data into each capacity provider's report. Both need clean data, so they are best built on one foundation.