Market Intelligence & Positioning

Research & Publications

Lexicon Associates produces topical, data-rich research into key issues affecting 
the global insurance and asset management industries.

Scaling up

Growing profitably with MGAs

Lexicon’s new strategic study on the global MGA market analyses the strategies and business model adaptations that are enabling a new generation of MGAs to scale swiftly and profitably.  A wide variety of MGA platforms, incubators and accelerators has shown that attractive returns for capacity providers and investors are compatible with rapid growth.  

Leveraging Lexicon’s extensive MGA database, the study explores:

• How MGA capital structures are evolving to support long term partnerships that optimize alignment of interests with third party capacity providers

• How geographic markets that have not historically been fertile terrain for MGAs are now opening up

• How data architecture and data management – long a weak link for many MGAs – has become a key competitive advantage for some

• How a growing number of MGAs are expanding the frontiers of insurable risk and developing new markets for the benefit of their capacity providers

• How large MGAs and MGA platforms – which now rival small balance sheet insurance companies in size – are maintaining speed and flexibility, and avoiding bureaucratization

Rapid growth can also lay bare strategic errors and operational missteps.  Our report includes accounts of MGAs that failed to live up to their initial promise or achieved success only after wrenching course corrections.  But the most entrepreneurial sector of the global insurance market will always produce winners and losers.  The biggest mistake for carriers seeking access to new markets and new ideas would be to stay on the sidelines.  

The Most Undervalued Asset in Insurance

Opportunities are growing for insurers
to tell a more engaging brand story.