MGA - Insurance Software development

What is the difference between an Insurance Agency and an MGA?

Author - Webner
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4:49 am
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Insurance Agency:

An insurance agency, also known as an insurance agent, is an individual or company authorized by a carrier to sell the insurer’s products in exchange for commission or compensation. Insurance agencies or agents are regulated by the insurance laws of the country or state in which they work. Independent agents can sell or offer products from a variety of carriers, whereas captive agents only sell the products of the single insurer to the customers.

For example, ABC Insurance is an independent insurance agency. This agency has employed insurance agents to sell the insurance products of […]

Managing General Agent (MGA)

Author - Webner
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4:16 am
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Managing General Agent(MGA) is a specialized type of insurance agent/broker that is authorized with different insurance companies. We can say that these types of agents can work as a broker or agent on the behalf of an Insurer. While an insurance broker works for the policyholder, an MGA works for the insurance company.

These independent agents have specific skill sets or knowledge that the insurance company doesn’t have amongst their regular staff. As a result, they’re often assigned duties an insurer won’t be able to fulfill.

MGA’s can also perform certain functions that are […]

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