Which functions does a Managing General Agent (MGA) typically perform?

A Managing General Agent (MGA) typically performs a range of crucial functions in the insurance industry, including underwriting, binding coverage, and claims management. Underwriting is the process where the MGA assesses risks associated with potential policyholders and determines the terms and pricing of coverage. Binding coverage refers to the authority the MGA has to finalize insurance contracts on behalf of the insurer, ensuring immediate coverage for clients. Additionally, MGAs often handle claims management, which involves overseeing the processing of claims when policyholders seek compensation for covered events.

This multifaceted role enables MGAs to act as intermediaries between insurance companies and agents or brokers, streamlining operations and improving overall efficiency in the insurance distribution process. While conducting market research and handling policy selling and marketing may be components of an MGA's responsibilities or related business activities, the core functions that define their role are centered around underwriting, binding coverage, and managing claims.