Global revenue generated by general agency management, general insurer management, and coverholder groups reached approximately $23.9 billion in 2023, according to an updated ranking and analysis by marketing and consulting firm Insuramore.

Between 70% and 75% of revenue came from direct commercial property and casualty or non-life insurance, while the remainder came from direct private property and casualty, life and health insurance, and reinsurance.

Last year’s market valuation represents annual growth of more than 20% compared to 2022, before accounting for inflation. The growth rate is nearly double that of the global insurance broking sector, which is likely to grow by more than 11%. It also notes that MGAs globally have written premiums that may exceed US$200 billion across all insurance classes in 2023.

Last year, Brown & Brown maintained its position as the leading group in the sector, with MGA revenues almost double those of second-placed Amwins. Subsequent ranks were held by Ryan Specialty Group, TIH and Gallagher.

Together, the top five groups represent approximately 17.6% of global MGA revenues in 2023. The shares of the top 50, top 100, and top 300 groups were 55.4%, 67.5%, and 84.4%, respectively, reflecting a fragmented but Very dynamic. . According to Insuramore, there are about 3,000 companies participating in MGA activities worldwide, and more than 1,650 companies are expected to raise premiums exceeding US$10 million this year.

In terms of ownership, the top 300 groups in 2023 included 58 broker-owned groups, 31 insurance company-owned, and 211 independent groups, many of which are backed by private equity firms.

Among insurer-owned groups, Munich Re led with the highest revenues from its MGA business in 2023, while NSM Insurance Group was the largest independent group. Geographically, the United States had the largest number of MGAs in the top 300 with 163, followed by the United Kingdom (42), Canada (16), the Netherlands (12), and Germany (11).

In line with the industry’s high growth rate, almost all MGAs saw revenue increases in 2023, with Insuramore forecasting that 12 of the top 300 companies will double their income compared to 2022, driven by organic growth and mergers and acquisitions (mergers and acquisitions). activity.

However, the sector has faced mixed results, with many new MGAs going out of business in 2023 or early 2024, and some sectors, such as cyber insurance and specialties such as cannabis and pet insurance, likely to become overwhelmed. Despite the challenges, the demand for more innovative and customized insurance coverage, supported by advanced technologies, indicates a positive outlook for the global MGA market.

What do you think about this story? Share your thoughts in the comments below.