{"id":3166,"date":"2025-07-31T11:05:51","date_gmt":"2025-07-31T11:05:51","guid":{"rendered":"https:\/\/dev.opendesignsin.com\/insillion\/?p=3166"},"modified":"2025-12-29T07:28:40","modified_gmt":"2025-12-29T07:28:40","slug":"factors-mgas-should-consider-for-the-ideal-risk-capacity-partnership","status":"publish","type":"post","link":"https:\/\/dev.opendesignsin.com\/insillion\/blog\/factors-mgas-should-consider-for-the-ideal-risk-capacity-partnership","title":{"rendered":"Factors MGAs should consider for the Ideal Risk Capacity Partnership"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1339.52px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\" data-scroll-devices=\"small-visibility,medium-visibility,large-visibility\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><span data-contrast=\"none\">Taking a product from conception to viable program model is no small feat. But for many aspiring MGAs, the next step<\/span><span data-contrast=\"auto\">\u2014<\/span><span data-contrast=\"none\"> securing risk capacity, can feel like <\/span><span data-contrast=\"auto\">unfamiliar territory, especially without clear knowledge on how the process works.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">That's where MGA 101 comes in\u2014 <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/mga-insurance-model-risk-capacity-basics\">a series designed to break down key concepts surrounding risk capacity<\/a> for anyone looking to launch an MGA . In this second edition, two seasoned experts in insurance innovation and program design, Chris Lowell (Managing Director, InnSure) and Somil Jain (Principal & Senior Consulting Actuary, Lewis & Ellis), offer practical insights into the <\/span><i><span data-contrast=\"none\">what, where,<\/span><\/i><span data-contrast=\"none\"> and <\/span><i><span data-contrast=\"none\">how<\/span><\/i><span data-contrast=\"none\"> of approaching capacity providers.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/gKvo74i0-i8?si=o9xulgRMlL6vo8Ib\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Key Considerations for MGAs before seeking Risk Capacity<\/h2>\n<p><span data-contrast=\"auto\">Before an MGA starts thinking about risk capacity, it's important to have conducted thorough user discovery research by speaking with underwriters, actuaries, potential customers, and distribution partners.<\/span><span data-ccp-props=\"\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Prospective MGA founders should <\/span><span data-contrast=\"none\">chat with producers to share what they're building, get their take on current market dynamics, and explore whether they might be open to distributing the MGA's products down the line.<\/span><span data-ccp-props=\"\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">As producers are constantly in conversation with carriers and reinsurers, answers to questions such as \"What markets would this product fit best in?\" and \"Who might be interested in backing this particular risk?\" can be used to inform the MGA's approach to finding capacity providers.<\/span><span data-ccp-props=\"\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Some other questions could be:<\/span><span data-ccp-props=\"\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\"Where do MGAs get their capacity for this type of product?\" or<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\"Who's interested in expanding their limits from 1 to 5 million for this kind of product?\"<\/span><span data-ccp-props=\"\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Connecting with people who can provide these insights is a crucial first step to finding the optimal capacity provider. Most people are happy to share, so attending designated events such as the WSIA is a great way to start these conversations.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<h2>Where do MGAs get capacity?<\/h2>\n<p><span style=\"font-size: 16px;\" data-contrast=\"auto\">MGAs can attend in-person events such as WSIA or use digital platforms and directories to find insurers and reinsurers actively looking to support new programs. Find detailed information on Chris & Somil's top picks for <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/mga-risk-capacity-resource-guide\">MGA risk capacity resources here<\/a>.<\/span><span style=\"font-size: 16px;\" data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<h2>How to choose a risk capacity provider for your MGA:<\/h2>\n<p><span data-contrast=\"auto\">With a list of potential capacity providers in hand, the next step is to evaluate which partner fits best \u2014 but based on what factors?<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Chris & Somil like to use the analogy of a relationship here: Look for a carrier or reinsurer that is open to new conversations and is willing to grow with you.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It takes significant time and effort for an MGA to clearly communicate its business model, growth plans, and expectations from a capacity provider. Having to do this repeatedly with multiple partners can be exhausting, which is why a sound understanding of a capacity provider's long-term goals and interests is key<\/span><span data-contrast=\"auto\"> \u2014<\/span> <span data-contrast=\"auto\">it can help <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/building-mga-capacity-partnerships\">assess the MGA's long-term fit with them.<\/a><\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While most capacity agreements are structured as one-year commitments with a reinsurer or carrier, there are now providers pushing three-to-five-year commitments specifically. This provides MGAs with greater stability and reduces the need to send customers frequent, potentially confusing letters regarding policy changes- something that could leave them frustrated and hurt the MGA's branding.\u00a0<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Ultimately, it's in the MGA's best interest to partner with a risk provider that shares its philosophy, values<\/span><span data-contrast=\"auto\">, and plans for product and business growth.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<h2>Hands on vs. Hands off Approach: What works for your MGA?<\/h2>\n<p><span data-contrast=\"auto\">Each capacity provider takes a different approach to overseeing how an MGA manages their funds and operations. Some could be extremely hands-on, which could look like:<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Aptos\" data-listid=\"2\" data-list-defn-props=\"{\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Monitoring every policy language change.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Aptos\" data-listid=\"2\" data-list-defn-props=\"{\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Reviewing and providing feedback on pricing changes,\u00a0<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Aptos\" data-listid=\"2\" data-list-defn-props=\"{\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Inspecting every state expansion, and<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/li>\n<li data-leveltext=\"-\" data-font=\"Aptos\" data-listid=\"2\" data-list-defn-props=\"{\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Determining new loss ratios every time the MGA expands to a different region.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">On the other end of the spectrum, some risk providers take a hands-off approach, remaining largely uninvolved as long as the MGA stays within the target loss ratio.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">MGAs who lack strong in-house insurance or actuarial underwriting expertise often benefit more from a hands-on partner. The oversight and experience that this approach comes with can help prevent missteps, such as using policy language that could create issues with regulators, legal, and compliance teams.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Therefore, MGAs should carefully consider their strong and weaker suits and look for a capacity provider who can extend the right level of guidance and support wherever it's required.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<h2>Conclusion<\/h2>\n<p><span data-contrast=\"auto\">Finding risk capacity in a hard market is no easy task, but MGAs shouldn't settle for the first available option. Choosing a capacity partner who aligns with their goals and offers the right level of support can reduce operational friction, strengthen compliance, and protect the MGA's brand long-term.<\/span><span data-ccp-props=\"{\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/building-mga-capacity-partnerships\">next edition of MGA 101<\/a>, Chris and Somil will break down the key questions MGAs should be asking capacity providers before entering into any agreement to assess long-term fit, expectations, and alignment. <\/span><\/p>\n<\/div><div class=\"fusion-content-boxes content-boxes columns row fusion-columns-1 fusion-columns-total-1 fusion-content-boxes-1 content-boxes-icon-with-title content-left\" style=\"--awb-border-radius-top-left:12px;--awb-border-radius-top-right:12px;--awb-border-radius-bottom-right:12px;--awb-border-radius-bottom-left:12px;--awb-title-color:var(--awb-color8);--awb-margin-top:16px;--awb-hover-accent-color:var(--awb-color4);--awb-circle-hover-accent-color:var(--awb-color4);--awb-item-margin-bottom:40px;\" data-animationOffset=\"top-into-view\"><div style=\"--awb-backgroundcolor:#f1f6fc;\" class=\"fusion-column content-box-column content-box-column content-box-column-1 col-lg-12 col-md-12 col-sm-12 fusion-content-box-hover content-box-column-last content-box-column-last-in-row\"><div class=\"col content-box-wrapper content-wrapper-background link-area-link-icon link-type-button content-icon-wrapper-yes icon-hover-animation-fade\" data-animationOffset=\"top-into-view\"><div class=\"heading icon-left\"><a class=\"heading-link\" style=\"float:left;\" href=\"https:\/\/youtube.com\/playlist?list=PLTnXUxRSolkTm6yV4oQ9jVtwN6jrDVtnX&amp;si=o809VNc-ADBJwU9l\" target=\"_blank\" rel=\"noopener noreferrer\"><h2 class=\"content-box-heading\" style=\"--h2_typography-font-size:24px;line-height:29px;\">Securing Risk Capacity? Get Insider Insight.<\/h2><\/a><\/div><div class=\"fusion-clearfix\"><\/div><div class=\"content-container\">\n<p><span data-teams=\"true\">Let the experts break down all the MGA know-how surrounding risk and risk capacity. Navigate capacity conversations and expectations with confidence with our 3-part series.<\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><a class=\"fusion-read-more-button fusion-content-box-button fusion-button button-default fusion-button-default-size button- button-flat\" style=\"float:left;\" href=\"https:\/\/youtube.com\/playlist?list=PLTnXUxRSolkTm6yV4oQ9jVtwN6jrDVtnX&amp;si=o809VNc-ADBJwU9l\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"fusion-button-text\">Watch now<\/span><\/a><div class=\"fusion-clearfix\"><\/div><\/div><\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Taking a product from conception to viable program model is no small feat. But for many aspiring MGAs, the next step\u2014 securing risk capacity, can feel like unfamiliar territory, especially without clear knowledge on how the process works.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":776,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[25],"class_list":["post-3166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-debitis"],"acf":{"event_date":null,"author_name":"Team Insillion ","author_image":{"ID":3134,"id":3134,"title":"","filename":"Favicon-2.png","filesize":7655,"url":"https:\/\/dev.opendesignsin.com\/insillion\/wp-content\/uploads\/2025\/07\/Favicon-2.png","link":"https:\/\/dev.opendesignsin.com\/insillion\/blog\/digital-insurance-mga\/attachment\/favicon-2-2","alt":"Insillion 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