Captive proposition for MGAs increasingly attractive

• Captives now viewed as a business enabler by MGA community
• Additional flexibility and opportunity to profit share two key drivers
• Cells in Washington DC, as well as Guernsey and Bermuda formations common

Managing general agents (MGAs) are increasingly launching their own captives as a means of providing additional capacity or in a bid to share in the underwriting profits resulting from its programmes.

MGAs, as well as managing general underwriters (MGUs), are a specialised type of insurance broker or agent that have been granted underwriting authority by an insurer, which can include binding coverage, pricing and settling claims.