Without insurance capacity providers - either a sole provider or a panel of mixed risk appetites - an MGA is little more than an idea on paper. With it, MGAs have the ability to deploy their specialist underwriting skills, design products that reflect the real risks of clients, and help the market grow in directions that would otherwise be out of reach. Equally, their ability to build and sustain strong relationships with broker distribution partners remains one of the defining strengths of the MGA model ensuring that client needs are met through a combination of underwriting expertise and trusted market access.
At this year’s Capacity Exchange, I was struck by the tone in the room. Not just cautious optimism, but real confidence from capacity providers who increasingly see MGAs not as emerging players, but as established and essential components of the modern insurance ecosystem. The conversations spanned risk appetite, portfolio development, product expansion, and emerging trends. The message was clear: MGAs are not only here to stay, but in some instances are becoming a preferred and proven route for insurers to access innovation and niche markets.
The Clyde & Co MGA Opinion Report 2025, supported by the MGAA, revealed that 57% of carriers expect their capacity allocation to MGAs to increase in the next two years. That is not a marginal shift; it is a structural vote of confidence.
Capacity providers are recognising that MGAs offer something they cannot always replicate in-house. Whether it is underwriting insight into an emerging risk, the ability to tap into specialist distribution, or the agility to develop products quickly, MGAs are increasingly the channel through which insurers can experiment, diversify, and grow. This recognised value extends beyond innovation; it includes MGAs’ proven ability to foster deep, productive relationships with brokers, creating an ecosystem where trust and collaboration drive results. In a marketplace still contending with inflationary pressures, regulatory shifts, and rating volatility, that kind of flexibility has never been more valuable.
It wasn’t long ago that MGA leaders were united in voicing concerns about “capacity crunches.” Some of those challenges remain - markets will always ebb and flow - but the dialogue is changing. Today, the focus has shifted from capacity scarcity to capacity partnerships. MGAs are not a short-term foray; they are recognised centres of long-term, stable, and profitable growth for insurers, and centres of service excellence for brokers.
It is also part of a broader story of collaboration across the industry. The framework that the MGAA advocates for is information exchange with insurers, brokers and other professional bodies, coordinating views on regulatory issues, and sharing learning opportunities. In practical terms, it means MGAs have a stronger voice in shaping the policies and standards that affect capacity relationships.
This collaboration is essential. MGAs cannot thrive in isolation; their business models are entwined with those of insurers, brokers and an ecosystem of suppliers pushing the frontiers of best practice forward. The strength of these broker-MGA partnerships - built on mutual understanding and shared client goals - is an increasingly vital component of the sector’s success. By working together on shared priorities, be that operational resilience, consumer duty, or technological advancement, we strengthen the sector as a whole.
The conversations at the Capacity Exchange also underscored how the appetite of capacity providers is evolving. No longer are they simply looking to “fill lines.” Instead, they are actively seeking MGAs who can deliver sustainable, profitable growth. That means MGAs who invest in data, in compliance, in governance, and in talent.
The bar is higher, but so too is the opportunity. Capacity providers want more than short-term wins; they want long-term partners who can help them navigate new territories, from cyber risks to climate exposures, from embedded insurance partnerships to cross-border specialty markets. Crucially, they recognise that MGAs bring a proven track record of broker engagement and client service, translating underwriting expertise into tangible distribution success.
As we reflect on the momentum that defined 2025, the trajectory for the year ahead feels both clear and energising. Capacity is evolving, diversifying, and increasingly aligned with the strengths that MGAs bring to the market. If 2025 was about building confidence, 2026 will be about accelerating growth, harnessing data, technology, and collaboration to unlock new classes of risk and create more resilient partnerships.
Next year, we expect to see capacity providers moving further into specialist lines, seeking MGA partners who can deliver both underwriting discipline and distribution insight. Regulatory clarity and a maturing conversation between the MGAA, the ABI and the wider market will provide fertile ground for capacity innovation. Importantly, the MGA sector’s ability to act as a bridge - between entrepreneurial ideas and institutional stability - will ensure it remains at the centre of insurance market progress.
In short, the outlook for 2026 is one of opportunity: MGAs and their capacity partners are poised not only to withstand the challenges of a competitive environment, but to shape the future of insurance by proving that agility, expertise and trust are the foundation of sustainable growth. Their enduring relationships with brokers, capacity providers and clients alike continue to reinforce the value they already deliver, and will keep delivering in 2026 and beyond, to the market.
