{"id":3313,"date":"2025-10-13T13:43:02","date_gmt":"2025-10-13T13:43:02","guid":{"rendered":"https:\/\/dev.opendesignsin.com\/insillion\/?p=3313"},"modified":"2025-12-29T07:22:56","modified_gmt":"2025-12-29T07:22:56","slug":"building-mga-capacity-partnerships","status":"publish","type":"post","link":"https:\/\/dev.opendesignsin.com\/insillion\/blog\/building-mga-capacity-partnerships","title":{"rendered":"Evaluating Capacity Partner Fit: Guide for Aspiring MGAs"},"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\" style=\"--awb-line-height:1.5;\"><p>MGA101 is a video series designed for aspiring MGAs: Featuring <a href=\"https:\/\/www.linkedin.com\/in\/christopher-lowell\/\" target=\"_blank\" rel=\"noopener\">Chris Lowell<\/a> (Managing Director, <a href=\"https:\/\/innsure.org\/\" target=\"_blank\" rel=\"noopener\">InnSure<\/a>) and <a href=\"https:\/\/www.linkedin.com\/in\/somiljainconsulting\/\" target=\"_blank\" rel=\"noopener\">Somil Jain<\/a> (Principal &amp; Senior Consulting Actuary, <a href=\"https:\/\/lewisellis.com\/\" target=\"_blank\" rel=\"noopener\">Lewis &amp; Ellis<\/a>) who break down the complexities of securing risk capacity in practical, easy-to-digest conversations.<\/p>\n<p>This blog explores the factors that go into building a strong MGA\u2013capacity partnership \u2014 beyond the financials, covering responsibilities, philosophical alignment and long-term partner fit.<\/p>\n<p><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/Rylnber3oLg?si=EvMVDYds2elCNtdt\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Entering an MGA\u2013Capacity Partnership<\/h2>\n<p>Entering an MGA\u2013capacity partnership involves more than just financial discussions. Here are several key aspects that Somil advises MGAs to clarify early on:<\/p>\n<ul>\n<li>Actuarial modeling- who will build the models?<\/li>\n<li>Underwriting guidelines- who defines them?<\/li>\n<li>Quote and bind systems- who creates and manages them?<\/li>\n<li>Policy forms- who drafts and updates them?<\/li>\n<li>Technology- who develops and maintains the platform?<\/li>\n<li>Compliance reporting -who is responsible for it? (This last point is especially important.)<\/li>\n<\/ul>\n<p>In most cases, the carrier providing the <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/mga-insurance-model-risk-capacity-basics\">paper and capacity<\/a> should be able to take on some of these roles. The exact responsibilities vary from carrier to carrier, depending on their expertise, resources, and overall management style. Some carriers or reinsurers, even within the same panel, may take a <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/factors-mgas-should-consider-for-the-ideal-risk-capacity-partnership\">hands-off approach<\/a>, if loss ratios fall outside the target range. Other insurers might be much more active, running regular audits and maintaining a stricter oversight.<\/p>\n<p>To evaluate which partnership dynamic would better support your MGA\u2019s growth, check out <a href=\"https:\/\/youtu.be\/Rylnber3oLg?si=MdMT1I5f10qVCC_z&amp;t=805\" target=\"_blank\" rel=\"noopener\">this video<\/a>.<\/p>\n<h2>Assessing Capacity Partner Fit<\/h2>\n<p>Chris suggests evaluating capacity partner fit not just by the level of support provided, but also by how that support feels.<\/p>\n<p>For new MGAs, interaction with carriers is likely daily, especially around red flags, referrals or underwriting triggers. Over time, this may shift to weekly or monthly reviews. During this evolution, it\u2019s worth asking: does the capacity provider\u2019s support feel positive or negative?<\/p>\n<ul>\n<li>If the relationship feels like constant oversight, it could stifle learning, limiting the MGA\u2019s growth.<\/li>\n<li>However, if their support comes across as timely and constructive advice from a partner, that\u2019s positive support.<\/li>\n<\/ul>\n<p>Partnerships where incentives are aligned and adversarial tension is low make for solid partnerships, according to Chris \u2014 though they can be hard to find.<\/p>\n<p>Another positive sign is when capacity providers actively connect MGAs with <a href=\"https:\/\/dev.opendesignsin.com\/insillion\/blog\/mga-risk-capacity-resource-guide\">valuable resources and people<\/a> in their network. Introducing MGAs to resources that can open new doors for them demonstrates their genuine investment in the MGA\u2019s long-term growth.<\/p>\n<h2>Aligning Philosophically<\/h2>\n<p>If an MGA\u2019s underwriting philosophy is rooted in targeting the safest risks, it makes sense to work with a capacity provider who shares that perspective. On the other hand, innovative and emerging products require a forward-thinking carrier willing to back less traditional approaches.<\/p>\n<h2>Long-Term Capacity Fit Vs. Better Terms<\/h2>\n<p>Lastly, Somil advises MGAs to prioritize long-term fit over short term advantages. A carrier offering the \u201cbest\u201d terms today may not be the right partner for tomorrow.<\/p>\n<p>MGAs that are starting out may overlook long-term fit in favor of securing paper- But the right capacity partnership not only provides financial support \u2014 it provides room to mature and grow. With philosophical alignment and mutual trust, capacity providers are more willing to overlook early missteps and support the MGA over multiple treaties.<\/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>Entering an MGA\u2013capacity partnership involves more than just financial discussions. Here are several key aspects that Chris and Somil advise MGAs to clarify early on:<\/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-3313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-debitis"],"acf":{"event_date":null,"author_name":"Insillion Team","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 Favicon","author":"1","description":"","caption":"","name":"favicon-2-2","status":"inherit","uploaded_to":3170,"date":"2025-07-31 10:29:21","modified":"2025-10-24 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