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The MGA Executive
Capacity Management

This is the sixth in a series of blogs containing excerpts from my forthcoming publication, 'The MGA Book'.

The MGA Executive Role: Capacity Management

An MGA is nothing without its product. The binding authority exists between a licensed insurance company and the MGA. Without that, there is no underwriting, no income, and no business.

Getting capacity, managing it, and delivering performance are primary roles of the CEO of an MGA.


You may delegate day-to-day capacity management, but you should ensure your finger remains on the pulse and that any potential issues are raised immediately and handled effectively.

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There are 5 key stages in the lifetime of a binding authority:






Finding and getting new capacity

Managing and tracking performance

Collecting a profit commission

Renewing the binding authority

Exiting the binding authority

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Many MGAs will strive to get more than one insurer to support them.


This is sound risk management advice, however it does increase the management time in monthly meetings, insurer pack creation etc.

Carrier Strategy

For MGAs with less than £5m GWP, it is strongly advisable to keep with one carrier and focus on the business to grow it and meet performance targets. Only start to expand capacity relationships when you are entering the 'lifestyle' stage of MGA growth (read more here).


In the early days, you have limited time, resources, and energy to devote to the difficult and costly process of getting extra carriers onboard. We go back to that keyword, focus.

MGA Magic

Develop more than one insurance relationship only when your annual premium income exceeds £5m, otherwise, you risk losing focus.

The author, David Hughes, is founder and CEO of the Insurance Data & Analytics consulting business

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