Pro: MGAs retain capacity support as growth becomes more selective

Specialist managing general agents (MGAs) that demonstrate clear value should retain a choice of capacity partners, even as market conditions make growth more challenging, according to Dan Maleary, CEO of Pro MGA Solutions.

Maleary (pictured) said none of the MGAs supported by the business had so far struggled to renew capacity. Some had secured longer commitments, moving from annual arrangements to three-year agreements or beyond.

“I don’t necessarily feel that the specialist MGA that’s providing the value, is going to have an issue,” he said.

“The greater challenge would fall on generalists and businesses expanding into peripheral classes without a clear connection to their core expertise,” Maleary said.

Remaining focused on the original proposition would be important as competition intensified, he added.

Maleary also sees insurers and reinsurers working more closely together to support delegated underwriting.

He expects that alignment to deepen approaching the January 2027 renewals, with hybrid fronting models encouraging greater reinsurer participation in MGA business.

The soft market pressures will see some MGAs consolidate or shrink to continue to demonstrate profitability, he suggested.

“Certain MGAs will not grow as aggressively or as assertively as they perhaps would want to grow,” Maleary said.

For Pro MGA Solutions, however, demand remains strong, he emphasised, and the business had added more than 20 new clients in the past year.

International expansion is a significant part of Pro’s strategy.

Maleary outlined plans for Australia, alongside opportunities in the Middle East and further European markets beyond its existing German presence.

Demand increasingly comes from established, regulated MGAs seeking support to enter unfamiliar jurisdictions, including businesses that have raised capital to fund expansion.

Maleary said Pro MGA’s role extends beyond regulatory oversight and operational services to helping clients test their strategies and connect with suitable insurance and reinsurance partners.

“You can’t be everything to everyone, and you have to stay true as to who you are and what you are,” he added.