Tech Trends Transforming the MGA Market in 2025

As we head into the final month of Q2, and as we have just joined the MGAA, I thought it was a great time to reflect on some of the technology trend predictions for MGAs in 2025 against what we have seen so far.

Let’s start with MGAs. In the US, MGAs have been growing since 2015. And from 2020, MGAs grew their premium from just over $40bn to approximately $85bn in 2024¹. Does that mean that there is a plateau coming, or with the right technology can MGAs really keep increasing their premium growth?

Now for the tech. Aside from AI, which everyone is talking about, one of the predictions that stands out for me is that ‘Data and technology will become strategic cornerstones for top MGAs’². And when I look into these trends, the more I see the need for ‘precision’³, ‘scale’³, ‘decision making’⁴ and ‘increased revenue’⁴.

So what have we seen so far? Whilst there has been no definitive numbers published on MGA growth or new MGAs joining the market, ‘Success in 2025 hinges on the ability to embrace and navigate technological advancements’³. Let’s look at those technological advancements now.

Artificial Intelligence (AI)

I can’t move on without touching on AI, so here goes. AI has been a hot topic for the insurance industry for a while now and the most talked-about technology seems currently to be generative AI. MGAs are increasingly adopting it for product development, risk assessment and back-office automation. The adoption of AI is helping MGAs reduce costs and streamline operations. According to Pro MGA Global Solutions, ‘automation is a cornerstone for MGA development because it offers end-to-end efficiencies across the whole insurance lifecycle’⁶. Process automation played a significant role in MGAs’ business plans for 2025⁵, and it seems from the conversations we are having and the people that we are meeting at industry events, the business plans are being taken seriously.

Data Management

MGAs are prioritising data management. By using structured data, MGAs are aiming to achieve more consistent and accurate analysis, reducing unpredictability and improving the decision-making process. With smart data exchange, data quality will be a key priority for competitive MGAs, as it enhances accuracy, streamlines collaboration with business partners, and drives greater operational efficiency. Tyler Diago of Arden Insurance quantified the impact of data management when he revealed that automation contributes to over 37,000 hours of automated accounting work every year at his MGA.⁷ This astonishing figure highlights the opportunity to save manpower on manual data processes and move to automation to free up peoples time to focus on other things.

Insurtech Partnerships

Partnerships are essential in business. But more important than partnerships alone is expertise in those partnerships (see our previous blog on expertise). To stay competitive, MGAs are forming partnerships with InsurTechs, and in doing so, they are adopting innovative solutions to increase efficiency and accelerate their digital transformation⁶. MGAs are known to build their operations around core systems⁸, with the flexibility to support quick and succinct entry into new and potentially niche markets. Whilst purpose build solutions, such as bordereaux management tools, require investment, in time and money, they unlock speed, efficiency, compliance and data quality.

Bordereaux Management

distriBind is an automated data exchange for delegated authority, designed to streamline back-office operations and reduce costs for distributors. We also provide you with a digital hub for delegated authority where data can be received and validated via API or bordereaux. You can manage the full lifecycle of risk, premium and claims with our core validations, providing both digital and traditional MGAs with the same process.

The MGA sector is dynamic and changing at an unprecedented level. The next few years will definitely be interesting to watch, with crucial technological innovation set to reshape all business functions. From the rise of generative AI to the growth of data visibility and InsurTech partnerships, these trends not only change the way MGAs operate, but they also create an opportunity to grow GWP.

Sources:

1 - https://www.insuranceinsiderus.com/article/2epwq0z30emp4fccrw2kg/research/mgas-market-size-grows-to-nearly-100bn-in-2024-but-growth-has-plateaued?zephr_sso_ott=sT3Tcp#:~:text=From%202015%20to%202024%2C%20direct%20premiums%20written,for%20the%20industry%20in%20the%20same%20period.&text=While%20the%20growth%20of%20MGAs%20has%20been,than%201.5%20points%20between%202020%20and%202024

2 - https://www.carriermanagement.com/brand-spotlight/vertafore/2025-mga-outlook-navigating-growth-technology-and-uncertainty/

3 - https://mgaa.co.uk/the-technological-revolution-reshaping-the-mga-landscape-in-2025/

4 - https://get.nice.com/Gartner-2025-Trends?utm_campaign=NL_Q125_EN_PLT_GLOB_243820_CLP_CX-2025-Trends_Gartner-Predictions&utm_source=google&utm_medium=cpc&utm_content=0318646&utm_detail=dentsu-all-uk-cx_trends&gad_source=1&gad_campaignid=21168222223&gbraid=0AAAAACq5q8GQxAE36Q6izGhWIlRKskYRW&gclid=CjwKCAjw6NrBBhB6EiwAvnT_rjnRBd0HU04l0N_XotmF1FEBWUgRBs32WrY60JNl2A-GCIS__2yU-xoCw7AQAvD_BwE

5 - Outlook: Technology-Driven MGAs Are Set to Accelerate Transformation in Insurance in 2025 – InsurTech360

6 - https://pro-global.com/technology-driven-mgas-are-set-to-accelerate-transformation-in-insurance-in-2025/

7 - https://coverager.com/insurance-automation-roundtable-report-from-top-100-brokers-and-mgas/?utm_source=chatgpt.com

8 - https://datos-insights.com/blog/navigating-landscape-mga-core-systems-insights/