An MGA is an individual or company who can act as a broker or agent on behalf of an insurer. While an insurance broker works on behalf of the policyholder, an MGA works on behalf of the insurance company. An MGA can be used by an insurance company in order to outsource certain tasks, such as claims handling or underwriting. This allows the insurer to focus on other areas of their business, such as the customer and insurance products.
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What Is the Benefit of a Managing General Agent?
There are several benefits to being a client of an MGA. One of the most important benefits is that the MGA can provide you with access to a wider range of insurance products. This is because the MGA has relationships with several different insurers, which gives them the ability to offer you a greater selection of options.
Another benefit of using an MGA is that it can often provide you with more competitive rates. This is because the MGA can use its negotiating power to get better rates from the insurers they work with. This savings can be passed on to you, the client.
Finally, an MGA can provide you with a higher level of customer service. This is because they are typically smaller than a traditional insurance broker and can offer you a more personal level of service. They will also be more familiar with the products they offer, which can make it easier to get the coverage you need.
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