Managing General Agents (MGAs) play a significant role in the insurance world. They act as a bridge between carriers and agents. They take on underwriting, policy management, claims handling, and distribution.

Running a managing general agency and its operations is not easy. Costs continue to rise, and the competition is stronger than ever, yet clients expect exceptional service and fair prices. Processes often take longer than expected, as MGAs are the ones communicating with both sides. 

The good news? MGAs can streamline their operations and reduce headcount, while continuing to grow their business. With the right approach, managing general agents can lead to cost savings, increased efficiency, and enhanced service.

In this guide, we’ll explain how MGA operations can be simplified, what challenges exist, and the best ways to run them smoothly.

TL;DR (Too Long; Didn’t Read)

• MGA operations include underwriting, claims, compliance, distribution, and broker-carrier communication.
• Inefficient operations increase costs, slow down turnaround times, and raise compliance risks.
• Common bottlenecks include manual work, disconnected systems, compliance complexity, limited staff, and competing demands.
• MGAs can streamline operations through automation, standardization, outsourcing, analytics, and better communication.
• Efficiency-focused culture and solutions like InsurOPS 360° help MGAs save time, cut costs, and scale faster.

What Are MGA’s Operations?

MGA’s operations cover all the day-to-day tasks that keep the business running:

• Underwriting risks
• Binding policies
• Handling claims
• Managing compliance and reporting
• Distributing products through brokers and agents
• Communicating with carriers and reinsurers

Each of these tasks requires time, expertise, and coordination. If even one step gets delayed, the whole operation slows down, which is why MGAs need strong processes and tools to keep everything on track.

Why Streamlining MGA’s Operations Matters

When operations are inefficient, MGAs face several problems.

First, costs rise quickly. Manual processes require more staff and take more hours. Errors also increase, leading to rework and delays.

Second, the turnaround time becomes slow. If brokers and clients wait too long for responses, they may move to competitors.

Third, compliance risk grows. With so many regulations, missed deadlines or incorrect filings can lead to fines and loss of trust.

Streamlined operations help MGAs avoid these issues. They reduce waste, streamline workflows, and mitigate risk.

Key Challenges in MGA Operations

Before fixing operations, it’s important to know the common bottlenecks. Many MGAs still rely on spreadsheets, emails, and phone calls, which slows down underwriting, claims, and reporting. 

Disconnected systems add to the problem, as teams waste time copying data between tools that don’t talk to each other. Compliance also adds complexity, as regulations vary across states and lines of business. 

Without a straightforward process, MGAs risk missing requirements. Limited staff capacity makes it more complicated, as teams are often struggling to do more with fewer resources. 

On top of this, MGAs often work with multiple carriers with different guidelines, yet all of them demand accuracy and compliance. On the other hand, brokers push for speed and flexibility, leaving MGAs caught in the middle under tight deadlines.

How MGAs Can Streamline Operations

Running a managing general agency comes with endless moving parts. Underwriting, compliance, claims, reporting, and broker relations all happen at once. If even one step slows down, the rest of the process feels the impact. 

Streamlining operations helps MGAs cut costs, reduce errors, and speed up turnaround times. More importantly, scalable operations free up MGA teams to focus on growth instead of constantly fixing problems.

Let’s examine the most practical ways MGAs can streamline their operations, making them faster, cheaper, and more effective.

Automate routine tasks

Automation reduces manual work and allows an AI-powered software to handle repetitive tasks. MGAs have been hesitant when turning to AI, due to the nature of the industry, but they have started making progress.

There are AI tools explicitly built for insurance, such as Bound AI, which offer numerous benefits compared to handling all tasks manually. 

To learn more about automation for MGAs, read the article “MGA & AI: How Managing General Agents Use AI.”

Standardize processes

MGAs should build standard operating procedures (SOPs) for every task. Whether it’s handling a claim or sending reports, everyone should follow the same steps.

This ensures consistency, cuts delays, and makes training new staff easier.

Outsourcing MGA Operations

MGAs sometimes tend to keep everything in-house, but outsourcing can bring real value to the table. Typically, managing general agents would begin outsourcing simple, repetitive tasks, such as indexing, subjectivity follow-up, or inspection orders.

Many managing general agents end up outsourcing the complicated ones, like renewal underwriting or file audits. 

Insurance business process outsourcing, or shortly insurance BPO, reduces cost and lets the MGA team focus on strategy and client service.

The good thing is that insurance partners, such as OIP Insurtech, offer various underwriting services and tech solutions, giving MGAs a choice to select the ones they need help with the most.

Analytics

Data is a powerful tool. With analytics, MGAs can track loss ratios, monitor turnaround time, and spot inefficiencies.

High-quality analytics enables insurance leaders to make more informed decisions and adjust operations efficiently.

Strengthen Communication

Smooth communication between brokers, carriers, and clients is key. MGAs can use digital portals, chat tools, or dashboards to keep everyone updated in real time.

Strengthening communication reduces back-and-forth emails and speeds up decisions.

Efficiency

Technology helps, but people matter too. MGAs should train staff to look for bottlenecks, suggest improvements, and embrace change.

An efficiency-focused culture ensures long-term results. 

All-in-One Solution – InsurOPS 360°

InsurOPS 360° is our end-to-end solution designed to help insurance carriers and MGAs improve their performance and streamline operations. From consultancy with experts to workflow optimization and AI-driven automation, you can achieve your full potential with us by your side.   

With InsurOPS 360, you gain access to our AI lab consultancy, improving quality, reducing errors, and achieving scalable growth. 

Check out our InsurOPS 360° webpage to find a complete list of benefits.   

If you’re an MGA looking to transform your operations, click here to schedule a call with us and get started. 

The Bottom Line

MGA operations may be complex, but they don’t need to be overwhelming. By using automation, integrated systems, outsourcing, and transparent processes, MGAs can cut costs and save valuable time. 

Streamlined operations boost efficiency and strengthen partnerships with carriers, brokers, and clients. The MGAs that embrace more innovative, faster ways of working will lead the way, while those that don’t risk falling behind. The best time to start simplifying operations is now.