Not a Broker, Not an Insurer: Welcome to the world of MGAs
- Manisha Ghosh and Abhishek Kumar Namdev | finserv@vinodkothari.com
Introduction
The insurance industry globally has witnessed the emergence of several hybrid operating models that do not fit neatly within traditional regulatory classifications. One such model is that of the Managing General Agent (‘MGA’), an entity that performs significant insurance functions such as underwriting and risk assessment, pricing of insurance products, binding of policies, etc on behalf of the insurer.
While MGAs are well-recognised in mature insurance markets such as the USA, UK and Canada, their position under Indian insurance law has recently begun to take shape. An MGA typically acts as a middleman between the insurer and the insured.
In this article, we dive into the functioning of an MGA and how it differentiates from the existing insurance intermediaries, prevalent in the insurance sector in India.
Read more →