one orange question mark among many black question marksWhat is an MGA: Managing General Agent in Insurance 

Today there are many new home insurance companies popping up with flashy new products for homeowners. They are setup as a Managing General Agent or MGA, but what does that mean to you, the customer?

A MGA is technically not an insurance carrier but looks like one to the customer. They control the branding, pricing, and claims experience of your home policy, but someone else puts up the capital requirements needed to insure the home (the insurance carrier). This means the MGA does not take any risk on the policies they write, but instead receives a fixed commission (~25%) for placing and managing the policy. 

Some new MGAs in the home insurance market are: Swyfft, HippoKin, and even Neptune

They have all built a clean and simple experience to purchase home insurance. Additionally, they are improving the claims experience for customers. However, they still write on the same industry standard ISO forms that other carriers use.  

Hope that helps in clarifying the MGA! Check how the MGAs stack up against the carriers:

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At your service,
Young Alfred