European MGAs enter a new phase of strategic maturity
The European Managing General Agent (MGA) market is evolving rapidly, not only in scale but in sophistication. According to Enrico Bertagna, Managing Director of Bowood Europe, and Tobias Andersson, Head of Continental Europe, Howden Re International, this growth is driving MGAs to rethink their relationships with carriers and embrace a more strategic approach to capacity management.
“In our report Agents of Change, published earlier this year, we highlighted that the European MGA market is expanding in both size and sophistication,” says Bertagna. “A key byproduct of this evolution is the emergence of MGAs moving from small to mid-sized entities, typically around the €50 million GWP mark after 5-10 years of operation. This growth stage marks a turning point in how they manage capacity.”
From Fragmentation to Focused Partnerships
As MGAs mature, their carrier panels often become crowded. Many operate with 20 to 30 carrier relationships, a natural consequence of diversification and risk management during their early growth phase. Yet, as Bertagna explains, this breadth can eventually turn into a constraint.
“Early on, it’s sensible for MGAs to build as many carrier relationships as possible. You never know when a carrier might change strategy or pull out,” he notes. “But by the time an MGA reaches that €50 million mark, managing so many relationships becomes complex and resource-intensive, leading to a fragmented portfolio and a lack of depth in strategic partnership.”
This realisation is prompting a new kind of conversation in the European market. Increasingly, MGAs are seeking help to consolidate and rationalise their carrier panels, reducing from 30 to perhaps six or eight core partners, with the goal of building long-term, strategic relationships that unlock more stable capacity and better economics.
“At that stage, profitable MGAs realise they can negotiate improved terms,” Andersson adds. “By working with fewer, more strategic carriers, they can gain both operational efficiency and potentially better commissions or fees.”
A New Strategic Landscape
This shift presents a unique opportunity for brokers. “It allows our team to draw on the depth of experience and insight we’ve built across markets,” says Bertagna. “Restructuring an MGA’s carrier panel requires specialist knowledge, deep market connections, and skilled negotiation. It’s a chance for brokers to add real value.”
The market is responding in kind. “We are seeing a growing appetite for portfolio deals, which offer carriers a faster route to distribution and a more streamlined, strategic relationship,” Andersson explains.
Traditionally, carriers – particularly those in London – operated in product silos, with individual underwriters holding decision-making authority for their specific lines. This structure made cross-product portfolio deals challenging. But that is changing.
“To overcome these barriers, some carriers are now creating dedicated divisions with their own P&L and authority to enter strategic agreements across product lines,” says Bertagna. “That is a powerful shift as it gives MGAs a committed partner they can rely on as they innovate and expand.”
A Market Moving to the Next Stage
He sees this as the beginning of a natural next step in market evolution for MGAs and carriers alike. “Facilities have existed for years, but this is the start of a more strategic way of doing business,” he says. “The momentum is clear, both from MGAs who want to make it happen and carriers ready to support them.”
“When the big players start doing things differently, others take notice. More carriers will structure themselves to support this change and that’s good news for both MGAs and brokers. More choice means better outcomes for everyone,” Andersson concluded.
Read the full report Agents of Change
Listen to Bowood’s Enrico Bertagna and Howden Re’s Nena Atkinson breakdown how the industry-first report was created on Howden Re View