MGAs Must Offer Digital Assets to Survive, Says Keating
Managing general agents (MGAs) must launch digitally traded products to satisfy broker demand, according to the head of the trade body representing the sector. Mike Keating, the CEO of the Managing General Agents’ Association, argues that MGAs cannot afford to ignore requests from their broker partners for more digital options.
Launching digitally traded products “has to be the way forward” for MGAs, Keating said. He explained that producing more e-traded products naturally generates more traction with brokers who have asked for it. The logic is straightforward: when an MGA responds directly to the expressed preferences of its distribution network, the resulting products are more likely to gain traction in the market. Brokers are more inclined to place business through channels they have explicitly requested, making the initial development effort a more calculated investment rather than a speculative gamble. Keating’s framing positions digital product development not merely as a matter of operational efficiency but as a direct response to a clearly articulated commercial demand from the intermediary community.
The MGAA conducted a survey in March. That study found that almost 60% of brokers were asking MGAs for more digital products. The survey involved 1,800 brokers. This sample size provides a substantial evidence base for the association’s position, capturing the views of a significant cross-section of the broker market rather than a narrow or anecdotal slice. The finding that nearly six in ten brokers are actively seeking more digital options suggests that this is not a fringe preference but a mainstream expectation that MGAs will need to accommodate. For MGAs that have not yet prioritised digital trading, the survey results indicate that a majority of their potential distribution partners are already looking for alternatives or waiting for their current partners to catch up with their requirements.
The cost of deploying products is a factor that needs consideration. The outlet analysed the costs of deployment last month, though the specific figures remain restricted by paywalls and subscription requirements. Any decision to build or buy new digital trading capabilities carries a financial commitment that must be weighed against the expected return from increased broker engagement. MGAs operate with varying balance sheet capacities, and the scale of investment required for a full e-trading rollout may differ considerably depending on whether the MGA already has a technology infrastructure in place or is starting from a more manual baseline. The analysis also implies that cost is not a uniform barrier — some deployment routes may be more economical than others, and the choice of approach could significantly influence the feasibility of a digital launch for smaller MGAs.
Related: Zurich plans new capacity deals at Biba conference
Market shift toward digital tools
This push for digital tools reflects a broader shift in how insurance is bought and sold. When an MGA ignores the digital requests of its partners, it risks losing business to competitors who adapt faster. The broker community is under its own pressure to deliver speed and convenience to policyholders, and an MGA that cannot support that agenda may find itself excluded from consideration when brokers decide which partners to prioritise. The competitive dynamic is not limited to direct rivals; it also includes MGAs from adjacent niches or even insurers that offer similar products through more convenient digital channels. In this environment, the cost of inaction is not merely the status quo but a relative decline in market position as others move ahead.
While the source focuses on the mechanics of digital deployment, the underlying reality is that the industry is moving away from manual workflows. For an MGA to remain relevant, digital platforms are becoming essential rather than optional. The shift reflects changing expectations among the end customers of insurance, who increasingly interact with financial services through digital interfaces and carry those expectations into the commercial and specialty lines where MGAs typically operate. Manual processes, even when executed well, introduce delays and friction that digital platforms can eliminate. The direction of travel is consistent across the wider insurance market, with even the London company market and Lloyd’s pushing toward electronic placement and data standardisation, which means MGAs that remain reliant on paper-based or email-driven processes will find themselves increasingly out of step with the rest of the distribution chain.
Keating’s comments suggest that the decision to go digital is no longer just a technological upgrade but a business survival strategy. The data from the survey shows the brokers are already voting with their requests. Those brokers who have responded to the survey are effectively signalling their future purchasing behaviour, and MGAs that fail to respond to that signal may find that their relationships gradually weaken even where they have historically been strong. The strategic implication is that digital capability will increasingly be a precondition for being considered as a trading partner at all, rather than a differentiator that sets one MGA apart from another. MGAs that delay may face a harder task in playing catch-up later, as brokers will have already established workflows and system integrations with more responsive providers.
According to the filing, MGAs should consider how to launch capacity deals at upcoming industry events. The upcoming Biba conference offers a chance for MGAs to address these digital gaps and secure future partnerships. [1] The conference environment provides a concentrated setting in which MGAs can meet multiple broker partners in a short period and demonstrate their digital capabilities directly. For MGAs that have already developed e-traded products, the event offers a platform to showcase those tools and generate early adoption. For those still in development, the conference can serve as a useful deadline to focus internal efforts and ensure that a credible digital proposition is available to present. Industry events also allow MGAs to gauge what competitors are offering and calibrate their own digital roadmaps accordingly, ensuring that any planned launches are competitive with what is already available in the market.
