What IS a Managing General Agent?
An MGA is a company or organisation that has been granted authority by an insurer to carry out specific insurance functions on its behalf. Unlike traditional insurance brokers, MGAs often do things like develop their own products, assess/underwrite policies, set pricing, and some may also manage customer claims.
However, they do not usually carry the financial risk themselves — the insurer still remains responsible for carrying the claims risk, either as the claims handler but always as the regulated underwriter.
Think of an MGA like a creator of products, who can package them up and manage/deliver them in new ways.
So what does that mean for Equipsme?
As an MGA, Equipsme is still authorised and regulated by the Financial Conduct Authority. We work with major insurers and health service providers to develop our own exclusive health insurance and wellbeing support plans - aimed specifically at businesses throughout the UK, and the 80% of employees who don’t have health insurance.
What are some examples of what an MGA does, and why is it different?
Risk Assessment and Underwriting
One of the main responsibilities of an MGA is risk assessment and acceptance. Underwriters analyse data to decide whether to accept a risk and determine appropriate pricing for premiums, to ensure fair value and profitability. Because they are delegated authority by insurers, MGAs can evaluate applications and make decisions often more quickly without referring every case back to the insurer. The theory is that this can create a faster and more streamlined experience for brokers and clients.
At Equipsme, for instance, we look at risk differently to some other PMI providers. We’ve chosen to spread risk across wide customer communities, and removed some more costly or volatile elements of cover, including pre-existing conditions and cancer treatment.
Product development
MGAs also play a major role in product development. Many insurers rely on MGAs to identify gaps in the market and build innovative insurance products that address emerging risks. Their agility allows them to adapt to changing industries and customer demands more quickly than some traditional insurers.
In our case, we identified a gap in the market for a ‘middle-ground’ option that sat between traditional PMI and cash plans. So we created plans designed to help fill that gap in the market.
Distribution
MGAs also support distribution and customer service, working closely with brokers to provide guidance, technical expertise, and access to products that might not be available through traditional insurance markets.
Our relationship with our broker partners is incredibly important to us, and we work very hard to support them to articulate our offer to clients, and showcase what we do.
What sort of things does Equipsme NOT do?
As an MGA, we choose not to sell other people’s insurance products, and we don’t review the whole market for our clients – or give recommendations or advice on what policies to choose.
Instead, we help by providing very clear information about what we do and don’t cover. So we can answer questions, but we can’t tell anyone what to buy.
One of our founding principles is transparency, and one of the things that we’ve aimed to do as an MGA is strip back some complexities around health insurance products, in order to help make things simpler and easier to understand.
We also chose not to handle or settle claims ourselves. Instead, we partner with specialist organisations in the health insurance and health services space, rather than trying to reinvent that wheel ourselves.
What other advantages are there to being an MGA?
There are several advantages to operating as an MGA. Generally speaking, MGAs can move quickly to launch new products, enter niche markets, and respond to changes in customer demand without the large operational structures of traditional insurers.
Specialisation is another major advantage. By focusing on specific industries or risk types, MGAs can develop deep expertise that helps improve underwriting accuracy and customer outcomes. This specialist knowledge also makes them valuable partners for insurers and brokers looking to expand into new markets.
MGAs can also offer greater efficiency. Because they handle underwriting and administration directly, insurers can reduce operational costs while still accessing profitable business opportunities. At the same time, brokers and customers benefit from faster decision-making and more personalised service.
What does being an MGA mean to YOU?
Being an MGA is an important part of our identity, and what it means to me at the end of the day is flexibility. It has allowed us to bring something new and different to the PMI market.
I’m particularly proud that this year we’ve joined the MGAA - the Managing General Agents Association – the trade body supporting MGA interests and objectives in the UK and Ireland.
It means we can access regulatory guidance, industry insight, key insurer and broker relationships, and professional development resources. But more than that, it’s a ‘coming of age’ moment, as we continue to scale-up and grow into the ‘middle-ground’ we created.
Date published: 06/07/26
