As reliance on wholesale brokers and managing general agents (MGAs) grows, so do expectations on responsiveness, product knowledge, and the ability to place niche or emerging risks. But the gap between expectations and performance is widening in key areas.
In an industry defined by risk, wholesale brokers and MGAs have become a crucial part of the rapidly evolving insurance distribution chain. Positioned between retail agents and specialty carriers, MGAs bring not only market access but also a level of underwriting authority that places them closer to the insurer’s seat than traditional brokers typically are.
Unlike their retail counterparts, MGAs operate with delegated authority – writing policies, pricing risk, binding coverage, and handling claims – all on behalf of insurance carriers. It’s a position that has become increasingly attractive to retailers seeking deep expertise and bespoke solutions for hard-to-place or emerging risks.
According to new data from Insurance Business America (IBA), that reliance is accelerating. Our research shows a marked increase in MGA utilization: 33 percent of retail brokers now place at least half of their business through wholesale channels – up from 23 percent in 2024. The rise underscores a shifting dynamic in the marketplace, where complexity in risk meets a growing appetite for specialization.
And rising popularity has brought increased competition. The MGA space has become intensely competitive, reshaped by technology, capital, and consolidation.
First, insurtech platforms have lowered the barrier to entry. A wave of digital-first MGAs has flooded niche markets – cyber insurance, gig economy coverage, and embedded offerings – once considered fringe, now fast-moving frontiers.
“To remain competitive, it's all about data and speed,” Chris Carlson, chief operating officer at CRC Specialty, told IBA in an interview. “MGAs that are tech-powered, specialized, and distribution-loyal will do well.”
Second, private equity and venture capital have taken note, drawn to MGAs’ capital-light models and high margin potential. With cash to burn, startups scale quickly, pressuring incumbents to sharpen their edge.
And third, as the market matures, the race for scale has begun: mergers and acquisitions are sweeping up smaller players, creating behemoth platforms with broad portfolios and deep pockets.
“The magnitude of acquisitions in retail and wholesale over the last 10 years has been massive,” explained Scott Purviance, CEO of Amwins Group. “I think that this high demand has prompted many more entrepreneurial underwriters to start their own MGAs with the goal of selling it further down the line.”
At the same time, insurers themselves are leaning in. For carriers, MGAs offer nimble access to specialized segments and distribution networks without the overhead of in-house teams. But this favor comes with expectations – underwriting discipline, profitability, and operational rigor are no longer optional. The bar is higher, and the scrutiny sharper.
All of which raises urgent questions for the industry: How often are wholesale brokers and MGAs used? What sets the top performers apart? And, in a saturated field, what does it truly take to stand out?
IBA sought answers by surveying 1,200 insurance professionals. The result is a detailed snapshot of the current market – one that not only identifies the key factors brokers prioritize when choosing wholesale partners, but also measures how well MGAs and brokers are delivering on those expectations. From responsiveness and expertise to market access and claims handling, the survey results reveal noticeable gaps, and emerging priorities.
In the pages that follow, we unpack the findings of the latest Wholesale Brokers and MGAs research. With data, analysis, and industry insight, this report offers a roadmap for MGAs navigating an increasingly high-stakes landscape – and a benchmark for excellence in a market where performance is everything.
When retail brokers pick up the phone to call a wholesaler or MGA, it’s typically for one reason: access.
That’s the clear takeaway from IBA’s survey, which asked brokers to name their top reasons for working with wholesale partners. While respondents could select up to three motivations, one stood out sharply: some 29 percent cited “coverage or a market I don’t have access to” as the primary driver. In a distribution system increasingly defined by narrow risk appetites, this makes sense. Wholesalers and MGAs fill the critical gaps – offering entry into non-admitted markets, surplus lines programs, and hard-to-place risks that lie outside the scope of brokers’ direct appointments.
“Scale gets you in the conversation, but beyond that it’s all about specialization, execution, and insights,” Carlson explained. “Are you specialized with the right talent? Flashy tech is great, but you need to have a very solid talent proposition to attract the right business.”
Close behind, 19.2 percent and 17.4 percent of brokers identified specific or specialty coverage needs as key drivers. This reflects a growing demand for highly tailored coverage, in which case the MGA becomes less of a channel partner and more of a specialist surgeon – called in when precision and deep domain knowledge are required.
“In the last 15 to 20 years, retail brokers' expectations when it comes to choosing a wholesaler or MGA have changed dramatically,” added Purviance, “they now expect specialization – not only in a line of business but in the class of business that you're dealing with.”
Another 14.2 percent of brokers reported using wholesalers to test the market – to obtain a competitive quote or validate pricing. While not the top priority, this use case underscores the role of MGAs as not just access providers, but also strategic advisors in a tightening pricing environment. Even when a retail broker has a market, having an MGA in the wings can offer leverage and ensure the client is getting the best terms.
About 9.6 percent of brokers said they reach out specifically for the wholesaler’s expertise – essentially outsourcing judgment on complex or unfamiliar risks to those with a sharper focus. From environmental liability to high-value personal lines, MGAs often act as in-house consultants, translating unusual exposures into insurable terms.
Lower on the list, but still notable: 6.2 percent of brokers indicated they use wholesalers to manage complex clients or cases that exceed their internal capabilities. Just 2.8 percent said they leaned on wholesalers when unfamiliar with a risk altogether, and less than 1 percent cited reasons like getting a second opinion or “other” miscellaneous factors.
What emerges from the data is a clear pattern. Wholesale brokers and MGAs aren’t just brokers with bigger rolodexes. They’re used purposefully – for access, for specialization, and for expert solutions for unique risks. In essence, wholesalers serve as problem-solvers and market finders.
“We hire people that only place specific types of business, and we try to keep them from becoming generalists to ensure that these specialized skillsets stay sharp,” Purviance said. “Historically, MGAs have been more geared toward niche products, meaning they can build capacity for that product and bring deep underwriting expertise. So, that niche expertise is critical.”
While pricing competitiveness and benchmarking matter, they are supporting actors, not lead drivers. And extras like marketing support or co-branded materials – though valued in an ongoing relationship – aren’t what prompt the initial call. At its core, the wholesale proposition is built on access, knowledge, and trust.
These insights lay the groundwork for understanding what brokers truly value in their wholesale partners – a theme that carries through into the next section of the report, where performance metrics and service expectations take center stage.
In an industry where relationships are everything, retail brokers are becoming more exacting in their expectations of wholesale partners. And while MGAs and wholesalers remain indispensable for market access and solving complex risk puzzles, this year’s data suggests many are falling short of the mark – sometimes by a relatively wide margin.
In the survey, brokers rated the importance of various service attributes on a 1-to-5 scale – and then evaluated how well the wholesale market is delivering on those same criteria. The result: a revealing look at where MGAs are meeting expectations, and where the cracks are starting to show.
The table below lists the 10 key service criteria most important to brokers. For each factor, the table shows both the average importance rating and the average performance rating, both out of 5, given by brokers for the wholesale sector in that area.
At the top of the list: responsiveness. It is the undisputed priority, with brokers giving it an average importance rating of 4.81 out of 5. Yet the corresponding performance rating comes in at just 4.18, creating a noticeable gap of 0.63 – the largest discrepancy across any measured attribute in 2025. In an increasingly competitive and time-sensitive environment, delays in communication or decision-making can jeopardize placements, client confidence and, ultimately, business retention.
“It is still very much a relationship business on the transaction side,” Purviance explained. “Trust and responsiveness are absolutely critical. You don’t necessarily have to solve any issues immediately, but you need to be able to communicate where you are in the process and what’s going on.”
To close this gap, agents may benefit from formalizing response standards – through service-level agreements (SLAs), for instance – and leveraging technology like automated workflows or CRM tools to accelerate turnaround. But cultural change may also be required: empowering underwriters and account managers to act swiftly within clearly defined authority limits.
“Investment in data and analytics is key to solving any deficiencies in this area, but going forward, AI will have a big role to play in unlocking efficiencies and freeing up time for staff to work on these relationships,” Purviance added. “Things like submissions and loss logging may be key candidates for automation.”
Other key areas showing significant expectation–performance mismatches include technical expertise and product knowledge, and the ability to place niche or emerging risks – each registering a gap of 0.40 or more. These are not fringe competencies. They are central to the MGA value proposition, particularly as risk categories evolve and specialized underwriting becomes more critical. Brokers want more than just access; they want partners who truly understand the complexities of the coverage they’re arranging.
“Talent, tech, and product are all dependent on each other,” Carlson said. “Talent doesn't want to go anywhere where there's no tech, and tech doesn't flourish anywhere where there's low quality products. You really need all three to win business, and all three are huge investment arms for us.”
Even with seemingly commoditized categories like pricing and product range, MGAs are struggling to keep pace. Brokers rated these as highly important – but marked noticeable declines in satisfaction, hinting at growing frustrations around competitiveness and innovation.
Digging deeper, the trend lines raise concern. Between 2023 and 2025, performance scores in several foundational areas have declined, rather than improved. Technical expertise and product knowledge slipped by 0.10 points and satisfaction with compensation dropped by 0.08 points. Even pricing – a cornerstone for many broker conversations – dipped modestly. These downward shifts suggest either that MGAs are losing ground, or that broker expectations are rising faster than the industry can adjust.
“Broker feedback is unbelievably important to us, particularly as the bar continues to be raised and expectations get higher,” Carlson explained. “I would say that the majority of the products we launch are based on feedback and discussions we’ve had with our retail brokers.”
For brokers, the strategic implications are clear. Responsiveness must be front and center in every MGA evaluation. If the wholesaler can’t deliver timely answers or move quickly on a quote, even superior expertise or market access may not be enough to save the relationship.
Moreover, specialization is no longer a nice-to-have – it’s a differentiator. Brokers should expect their MGA partners to offer deep knowledge in emerging areas to invest in staying ahead of regulatory, market, and coverage trends. Firms that tap into advanced analytics, maintain strong in-house expertise, and cultivate trust through transparency and communication are far more likely to stand out.
Lastly, the data makes one thing clear: the status quo isn’t enough. Brokers who commit to ongoing, data-driven performance reviews – rather than relying solely on legacy relationships – will be in a stronger position to deliver value to clients and avoid hidden service gaps. In a crowded field of wholesale providers, it’s not just about who you know- it’s about who shows up, who follows through, and who keeps raising their game.
Since the launch of its survey series in 2022, IBA has tracked how the various service attributes correlate with each other over time. The analysis doesn’t just measure how important certain qualities are in isolation – it looks at how they interact with other key decision factors. And from 2022 to 2025, one trend stands out above the rest: the rising correlation between compensation and core attributes like reputation, responsiveness, and marketing support.
That linkage has grown by 15 percent. This is notably significant compared to other correlation trends – as detailed in the chart below – because its change is more than double most other attributes. As the largest increase across the entire dataset, this indicates that firms offering competitive, transparent, and attractive compensation structures are increasingly seen not just as good payers, but as category leaders.
It’s a shift that suggests brokers are thinking more holistically about partnership value, connecting compensation not only to financial reward but also to trust, consistency, and professional alignment.
Another area gaining ground in the decision matrix: geographical reach. From 2022 to 2025, the correlation between a wholesaler’s presence across the US and other factors rose 9.5 percent. This reflects a broader truth in today’s market: while specialization plays a crucial role in meeting client demands – particularly as they become more complex and diversified – it's the reach of your operations that gets your foot in the door.
"You've got to meet your clients where they're at, and that includes geographically,” explained Carlson. “If you’re not present in a given marketplace, then that signals to clients that you lack scale and breadth of operations, which risks turning them elsewhere to a competitor.”
Marketing support, too, is on a steady climb. Its correlation with broker decision-making has edged up 8.9 percent over the same period. This likely reflects the relationship-driven nature of wholesale and MGA business, where trust and proximity to clients can be the difference between a successful client relationship and failure.
“Many brokers now have that Amazon Prime service mindset: they want it fast and they want it now,” Carlson added. “It's crucial for us to be able to meet our clients on the service side and meet our market partners on the underwriting side.”
Yet while some factors are rising in relevance, others appear to be losing ground.
Notably, the once-stalwart connection between the ability to place niche or emerging risks and other factors has weakened. The correlation dropped 6.2 percent from 2022 to 2025, suggesting that the need for niche risk-handling capabilities may be diminishing in the face of more prominent and established markets.
More broadly, technical expertise as a standalone factor also saw a 0.6 percent decline in correlation during the same period. While still valued, it may be starting to show weakness as a make-or-break differentiator – particularly in routine or commoditized lines. Automation, digital quoting platforms, and pre-configured underwriting engines are beginning to flatten the knowledge curve, making expertise less rare – and less central – in certain transactions.
“We put a tremendous amount of importance in technological solutions to help our internal brokers and underwriters be more responsive,” Purviance told IBA. “It gives them access to the full intellectual capital of the firm when they’re working on accounts.”
“It’s also important to invest in tools for retailers with respect to benchmarking certain classes and lines of business because it ultimately helps them to sell more effectively to clients,” he added.
Carlson seconded the need for such investment, adding that the main gaps in broker performance are around factors like digital capabilities. However, he argued that the issue primarily lies with legacy carriers struggling under the weight of legacy systems.
“The question is whether the wholesale ecosystem as a whole is meeting the needs of retailers from a speed perspective. I think that's where the digital part probably needs to pick up,” he said.
The takeaway: Broker preferences are not static. They’re adapting to a market shaped by technology, consolidation, and a relentless drive for efficiency. Compensation is no longer just about commission – it’s a proxy for partnership quality. Geographical reach signals versatility, while marketing support fosters trust.
And while technical skill still matters, it may soon take a back seat to scale, speed, and smart infrastructure. For MGAs and wholesalers aiming to stay relevant, the message is clear: the factors that won loyalty yesterday may not be enough tomorrow. Winning partners will be those who evolve in step with their brokers – not just in what they offer, but in how they deliver it.
Our research provides a clear snapshot of an evolving and increasingly demanding insurance landscape. As retail brokers deepen their reliance on wholesale partners and MGAs, their expectations are rising in tandem. It’s no longer enough to simply provide access to markets. In today’s environment, responsiveness, expertise, and market access are the new currency.
Many MGAs are responding to that call. But even among top performers, a common truth prevails: gaps between broker expectations and perceived industry performance remain – particularly in areas like responsiveness, technical depth, and service reliability.
What’s emerging is a new blueprint for wholesale success. In this next chapter of insurance distribution, market access is table stakes. The true differentiators are how quickly a partner can respond, how well they understand emerging risks, and what kind of strategic value they bring beyond the transaction. This includes everything from offering data-driven underwriting guidance to acting as a consultative ally for complex placements.
Technology will play a central role – but it won’t be enough on its own. Yes, automation and standardization are reshaping many parts of the insurance workflow, reducing the friction of quoting and binding. But with those efficiencies come new expectations: brokers want both speed and substance, efficiency and expertise.
“To remain competitive in the coming years, wholesalers and MGAs need to build the right solutions – often based on feedback from clients – supported by modern tech and analytical abilities, delivered by solid talent and marketing support,” Carlson concluded.
The survey also reveals a subtle yet meaningful shift in how brokers define value. Compensation structures, once a functional consideration, are now increasingly linked to brand perception, trust, and long-term loyalty. Likewise, a diverse and expanding product range is becoming a more decisive factor, especially as brokers aim to meet a broader array of client needs under tighter timelines and tougher underwriting conditions.
At the same time, technical expertise – while still valued – appears to be losing some of its standalone power. As commoditization spreads and automated tools take on more of the underwriting lift, the firms that stand out will be those who offer more than knowledge. They must offer foresight, flexibility, and a forward-thinking mindset.
The bottom line: this is no longer a marketplace where status quo strategies will suffice. To lead – and last – wholesale brokers and MGAs must be relentlessly broker-centric, technologically adept, and strategically nimble. The complexity of today’s risks demands it. So do the clients.
In an industry where trust is earned policy by policy, the future belongs to those who can anticipate what brokers will need next – and deliver it before they ask.
