If you’re in the insurance game, you’ve likely noticed the meteoric rise of Managing General Agents (MGAs) over the past decade. These nimble intermediaries are reshaping the industry by bridging the gap between insurers and customers with specialized expertise and innovative products. But with great growth comes great complexity—and MGAs are grappling with some serious hurdles. From sluggish speed-to-market to compliance headaches, the MGA challenges of today are real. The good news? Insurance technology solutions are stepping up to the plate. In this deep dive, we’ll unpack the top five challenges facing MGAs and show how cutting-edge MGA software solutions can turn these obstacles into opportunities.

What Are MGAs and Why Do They Matter Today?

Let’s start with the basics. Managing General Agents are specialized intermediaries that handle everything from underwriting to claims administration on behalf of insurers. Think of them as the Swiss Army knives of the insurance world—offering niche expertise, distribution muscle, and often, a faster route to market for carriers. According to a report by McKinsey, MGAs have become critical players in the insurance distribution chain, with their market share growing steadily as insurers lean on them to access hard-to-reach segments [McKinsey, 2022](https://www.mckinsey.com/industries/financial-services/our-insights/insurance-mgas-opportunities-and-considerations-for-investors).

Why the buzz? MGAs bring agility and innovation to an industry often bogged down by legacy systems. They’re behind the surge in bespoke products for emerging risks like cyber or climate events. But as their role expands, so do the insurance industry challenges they face. Let’s explore how this growth in responsibility translates to operational headaches—and how technology for MGAs offers a lifeline.

The Growth of MGAs Equals Growth in Operational Complexity

As MGAs take on more business, their operations are becoming a tangled web. A 2025 outlook from Carrier Management notes that the MGA market is poised for continued expansion, but with it comes heightened pressure to streamline processes and adopt digital tools [Carrier Management, 2025](https://www.carriermanagement.com/brand-spotlight/vertafore/2025-mga-outlook-navigating-growth-technology-and-uncertainty). More products, more carriers, more data—it’s a perfect storm of complexity. The question isn’t whether MGAs can grow; it’s whether they can scale without breaking. Let’s break down the top five challenges facing MGAs and see how digital transformation for MGAs can save the day.

Challenge 1: Slow Speed-to-Market

Why MGAs Struggle to Launch Products Quickly

In a world where customer expectations shift overnight, speed is everything. Yet, many MGAs are stuck in the slow lane when it comes to launching new products. Why? Manual workflows, fragmented systems, and endless back-and-forth with carriers create bottlenecks. A recent study revealed that it can take weeks—if not months—for some MGAs to bring a new insurance product to market [Insurance Journal, 2024](https://www.insurancejournal.com/blogs/selectsys/2024/10/23/795018.htm). In today’s fast-paced environment, that’s a death knell.

The Tech Fix: Pre-Built Workflow Modules and Automated Document Checks

Here’s where insurance technology solutions shine. Modern MGA software solutions offer pre-built workflow modules that standardize product launches, slashing setup time by half. Add in automated document checks—powered by AI to flag inconsistencies or missing data—and you’ve got a recipe for rapid deployment. Imagine rolling out a new cyber insurance product in days, not weeks. That’s the power of technology for MGAs.

Challenge 2: Manual Processes and Errors

Overloaded Back Offices and Rising Risk

Let’s be honest: the back office of many MGAs looks like a scene from a bygone era. Paper forms, manual data entry, and endless spreadsheets dominate. This isn’t just inefficient—it’s a breeding ground for errors. Human mistakes in underwriting or claims processing can cost millions in losses or reputational damage. With workloads piling up, the risk only grows.

The Tech Fix: AI-Driven Underwriting and Claims Automation

Enter automation for MGAs. AI-driven underwriting tools can analyze vast datasets in seconds, spotting risks and pricing policies with precision. Claims automation, meanwhile, cuts processing time by up to 60%, according to industry estimates. These insurance technology solutions don’t just reduce errors—they free up staff to focus on strategy, not grunt work. Why slog through paperwork when a machine can do it better?

Challenge 3: Unstructured Carrier Communication

Too Many Channels, Too Little Visibility

Ever tried juggling emails, phone calls, and carrier portals while keeping track of a dozen policies? That’s the daily reality for many MGAs. Unstructured communication with carriers—spread across multiple channels—creates confusion and delays. Without a clear view of what’s happening, missteps are inevitable. It’s one of the most frustrating MGA challenges out there.

The Tech Fix: Unified Platform with Real-Time Dashboard

A unified MGA software solution changes the game. Picture this: a single platform where all carrier interactions are logged, tracked, and accessible in real time via a dashboard. No more digging through email threads or chasing updates. With digital transformation for MGAs, you get transparency and control, ensuring nothing slips through the cracks. It’s like having a command center for your entire operation.

Challenge 4: Reporting Difficulties (Especially Bordereaux)

Error-Prone Excel Workflows

If there’s one word that strikes fear into the heart of an MGA, it’s “bordereaux.” These detailed reports—required by carriers to summarize premiums, claims, and losses—are notoriously complex. Most MGAs still rely on Excel, a tool not built for this level of data crunching. The result? Errors, missed deadlines, and frustrated partners. It’s a classic among insurance industry challenges.

The Tech Fix: Automated Bordereaux Engine

Here’s where technology for MGAs delivers a knockout punch. An automated bordereaux engine can pull data from across your systems, format it to carrier specs, and generate reports in a fraction of the time. No more late nights wrestling with spreadsheets. With automation for MGAs, accuracy improves, and relationships with carriers strengthen. It’s a win-win.

Challenge 5: Compliance and Audit Risk

Growing Regulatory Requirements

The regulatory landscape for MGAs is a minefield. From GDPR in Europe to state-specific rules in the U.S., compliance demands are intensifying. Failing an audit or missing a filing deadline can lead to fines, sanctions, or worse. A 2025 report by Johnson Lambert highlights regulatory risk as one of the top concerns for insurers and MGAs alike [Johnson Lambert, 2025](https://www.johnsonlambert.com/insights/articles/top-risks-for-insurance-companies-in-2025/). Staying on top of it all feels like a full-time job.

The Tech Fix: Built-In Audit Trail and One-Click Data Access

Modern MGA software solutions tackle this head-on with built-in audit trails that log every action, change, and decision. Need to pull data for a regulator? One-click access means you’re ready in seconds, not days. These tools ensure compliance solutions for MGAs are baked into daily operations, reducing risk and giving you peace of mind. Why gamble with compliance when tech can lock it down?

Conclusion: Transforming the MGA Operating Model Without Replacing the PAS

The challenges facing MGAs are daunting, no doubt. Slow speed-to-market, manual errors, messy carrier communication, reporting nightmares, and compliance risks—these aren’t small hurdles. But here’s the kicker: you don’t need to rip out your policy administration system (PAS) to fix them. The right insurance technology solutions layer on top of existing infrastructure, delivering digital transformation for MGAs without the headache of a full overhaul.

From AI-driven automation to unified platforms, technology for MGAs is rewriting the playbook. It’s not just about surviving these insurance industry challenges; it’s about thriving in spite of them. MGAs that embrace automation for MGAs and smart MGA software solutions will lead the pack, leaving laggards in the dust.

Ready to see how this works in action? Don’t let operational complexity hold you back. Request a demo of our cutting-edge platform today and discover how we can help you conquer the top MGA challenges. Or, if you’d prefer a no-pressure chat, let’s talk about your specific needs. Click here to schedule a conversation with our team and take the first step toward transforming your MGA with compliance solutions for MGAs and beyond.