Profitability Emerges as the Top Priority Managing General Agents (MGAs)

Technical profitability is consolidating as the main strategic priority for Managing General Agents (MGAs) in the current insurance market environment, characterised by margin pressure, tighter capacity conditions and the need to improve operational efficiency. This is according to a survey carried out by Weecover, the insurtech specialist in technology for the insurance sector, during its latest online event with MGA experts and senior executives in Spain. 

Specifically, 43% of respondents indicated that their main priority is achieving technical profitability, even if this involves reducing or cleansing their portfolio. In second place, 30% pointed to premium volume growth as their priority, while 17% prioritise reducing acquisition costs and 11% focus on diversifying into new lines of risk. These findings reflect a shift in the insurance sector, where the emphasis is moving from accelerated growth towards business sustainability.

José Núñez, Country Manager of Lloyd’s Europe in Spain and Portugal, reinforced this perspective during the event when explaining the stance of capacity providers: “The insurer does not want red numbers; what they are looking for is a sustainable business that delivers profit. If a managing general agent does not demonstrate technical discipline and begins to underwrite at a loss, the capacity tap is simply turned off.”

For his part, Jordi Pagès, CEO and Co-Founder of Weecover, stated that: “The sector is entering a phase in which profitability and operational efficiency are non-negotiable. Many entities are still dealing with manual processes that limit their ability to scale. In this environment, technology is no longer an option, but the differentiating factor to compete.”

Technology, profitability and new models 

On the technology front, the professionals surveyed clearly identified the main barriers to growth. 36% pointed to manual internal processes (particularly in underwriting and quotation) as their primary day-to-day obstacle.

This challenge is followed by the lack of agile integration with distributors via APIs (28%), as well as difficulties in reporting and data extraction (19%). In addition, 17% acknowledge that reliance on legacy systems or bespoke developments limits their ability to adapt in an increasingly competitive environment.

This scenario reflects a structural shift in the insurance sector, where profitability, automation and operational agility are becoming strategic priorities. In this context, MGAs are being forced to rethink their operating models in order to scale efficiently and respond to new market demands.

At the same time, the growth of models such as embedded insurance is opening new opportunities for insurers and distributors, enabling access to new distribution channels and improving conversion at the point of sale. The integration of insurance products directly into digital platforms — from eCommerce to financial services — is enabling greater personalisation and a smoother user experience, aligned with today’s consumer expectations.

The insurance sector is moving towards more efficient, digital and connected models, where process automation and distributor integration will be key to improving competitiveness. In this environment, embedded insurance is establishing itself as one of the main drivers transforming insurance distribution and optimising both user experience and business profitability.