Authentic's MGA Factory
How our infrastructure relates to the booming MGA trend... and where we're going
TL;DR: MGAs are booming. Authentic has quietly built the infrastructure to launch and scale them fast. Think: modern underwriting, targeted distribution, shared tech, and real traction. We're building the MGA factory. Here’s what that means and why it matters.
Authentic is building the MGA factory. Here’s why it matters and what's happening in the MGA market. Skip the first few paragraphs if you’re an insurance expert!!
Why MGAs Are Booming
Managing General Agents (MGAs) are increasingly vital players in the insurance world. Think of them as outsourced underwriting teams specializing in niche areas that big insurers might miss. They provide instant infrastructure - expert underwriters, strong broker relationships, and ready-to-go technology - letting insurers tap into new markets without building everything themselves.
The numbers back up the MGA boom. The U.S. MGA market now handles roughly $100 billion in annual premiums, consistently outpacing overall insurance growth. In 2023 alone, MGA premiums grew by about 13%, compared to about 10% growth across the broader market. This trend has attracted huge investor interest, fueling a surge in mergers and acquisitions.
MGAs are particularly thriving in specialty and excess & surplus (E&S) lines, stepping in where traditional carriers hesitate. For instance, specialty E&S markets in places like California have grown dramatically - quadrupling over the past decade. Authentic has admitted paper as well, which is a differentiator against the large supply of MGAs that have come into the market.
Inside Authentic’s MGA Factory: 4 Core Elements
At Authentic, we believe the MGA trend will continue. We’ve also realized we’ve built the bones of a next gen “MGA factory”. Our approach combines specialized underwriting, targeted distribution, and powerful shared infrastructure to launch numerous tailored programs efficiently and rapidly:
🎯 Specialized Underwriting
We dive deep into each vertical - whether fitness, wellness, education, or trades - and use detailed operational data to price risk better than anyone else.
🚀 Intentional Distribution
No spray and pray. We strategically partner with software platforms, associations, and relevant aggregators to directly tap into new business flows, providing partners with faster quotes and clearer appetites.
🛠️ Centralized Infrastructure
Our tech-driven core system lets us launch new programs in days/weeks, not months. By sharing technology, operations, and relationships across all programs, we significantly cut the cost and complexity of scaling.
📊 Metric Obsessed
We track everything - customer acquisition costs, funnel metrics, lifetime value, renewal yields - to optimize each MGA program's performance. This obsession with data ensures profitability.
Where Are We Today?
✅Launched: 30+ tailored affinity programs in the food & bev and fitness space
🚧In Progress: Building into retail, wellness, and other “Main St Plus” areas. This is a large TAM and we will continue to improve our main street affinity programs
🔭On the horizon: More embedded, specialized programs beyond Main St! 👀
Where We’re Betting Next?
We believe the future of insurance is tailored programs for all. In practice, this means specialized, profitable MGAs built on a common platform. At Authentic, that’s exactly what we're creating - an MGA factory designed for rapid, sustainable growth.