Launching a Managing General Agent (MGA) can be an exciting opportunity but also comes with challenges. In this article Tom Short breaks down the key challenges and considerations, as well as why the career move may not be right for every underwriter, but could be ideal for you depending on your aspirations and skills.

Key Challenges of Launching an MGA

Transitioning from an underwriter to an MGA leader presents unique challenges, demanding a shift in mindset and skills. Merely the thought of the associated entrepreneurial risk involved can be overwhelming for those used to the stable corporate environment, as generally speaking managing an MGA comes with financial and operational unpredictability. A good portion of the underwriters Tom interviews lack the broader business management skills required for success in the MGA arena, such as sales, operations, and legal expertise, making the transition difficult.

The role also requires extensive networking, relationship-building, and sales, areas in which technically focused underwriters may not be comfortable. Finally, the level of responsibility increases significantly—MGA leaders are accountable not just for underwriting results but for the entire business’s success, which can add pressure. Ultimately, while the rewards can be great, the role is not suited for every underwriter.

Been Thinking of Launching Your Own MGA in the UK or US

Alongside recruiting senior parametric professionals for his clients, Tom Short also focuses his time on helping high-performing underwriters in the UK and US (all risk lines exc nat cat and cyber) overcome the challenges of launching and managing their own MGA. He does this by providing underwriters access to his clients who are world-leading MGA builders, investors, and incubators who offer the necessary financial, operational, and technological support. Here’s how Tom’s clients help underwriters:

Launching and running an MGA is made significantly easier with the right support, which can overcome key hurdles like capital, compliance, and technology. Tom’s clients providing non-recourse capital and access to high-rated insurance paper and reinsurance lower the financial risks, easing entry into the MGA space.

They also offer operational and compliance assistance, managing governance, finance, HR, and legal requirements, freeing underwriters to focus on their expertise. A state-of-the-art technology platform further streamlines operations, often enabling market entry within two months and enhancing policy administration.

With long-term partnerships and guaranteed capacity, underwriters maintain autonomy while benefiting from strategic growth support. For those hesitant about entrepreneurship, this model helps mitigate financial risks while offering significant growth potential. This support empowers underwriters to succeed in the competitive MGA landscape, providing the tools needed for long-term success.

Why It Could Be Right for You

Launching an MGA could be right for you if you have entrepreneurial ambition and want to build a business with a high degree of autonomy. If you possess niche expertise, an MGA allows you to fill gaps in the market with tailored products.

It also suits those who desire ownership and control over simply underwriting, strategy, and product development, especially if you’re seeking freedom from corporate constraints and want to build significant long-term wealth. A willingness to take risks is essential, as the potential rewards of a successful MGA can be substantial.

This path is ideal for those with a broad skill set, eager to learn beyond underwriting, and those with a strong network of relationships with brokers and capacity providers to support business growth.

Conclusion

While launching an MGA can be incredibly rewarding, it’s not a path for every underwriter. It requires a broader skill set, entrepreneurial risk tolerance, and the ability to juggle multiple roles and responsibilities. However, if you’re someone with a strong vision, niche expertise, and a willingness to take on the challenges of running a business, it could be the perfect move for you.

If you are a successful and ambitious underwriter with a 10-year + track record in your niche, and the above has piqued your interest, please reach out to Tom Short at Leo Partners to learn more about the MGA investors, builders, and incubators he partners with who can help you launch your own successful MGA!