Understanding your MGA entrepreneur type

It’s a given that success in an MGA environment requires a high level of entrepreneurial flair. But understanding your entrepreneurial type is key to aligning vision with effective execution in the MGA space.

I often ask individuals looking to make the jump exactly what type of entrepreneur they identify as. Frequently these are senior insurance executives who have established stable career paths within carriers and have progressed to the highest levels in their careers who may want to do something different. These individuals typically excel in management, having overseen P&Ls and built profitable regional or global books of niche business on either Lloyd’s or Company market platforms, or on both. They bring a proven track record in specific classes of business and, in many cases, remain actively engaged in day-to-day underwriting. Their deep-rooted relationships within the insurance and reinsurance distribution network further underscore their influence and effectiveness in the market.

However, other MGA executives emerge from more unconventional paths, leveraging entrepreneurial grit and innovative thinking over traditional corporate experience. These individuals might come from a broking background or have experience in adjacent sectors, bringing a fresh perspective to the MGA model. They often rely on a network of strategic partnerships, a deep understanding of market trends, and a willingness to embrace risk to carve out a niche in the industry.

Both types and those somewhere in between can have hugely successful careers at MGAs but understanding your entrepreneurial type, and personal situation, should inform your route into the sector.

To go it alone or to take a softer landing?

The key question all MGA entrepreneurs have to ask themselves when it comes to deciding on their MGA journey is whether or not to set their own entity up from scratch. This may entail sourcing VC and PE investment to fuel the operational infrastructure and team build-out. It will almost certainly involve a delicate dance through the regulatory hurdles to obtain the relevant licences and require a cool head through the waiting period to secure approvals. Sourcing underwriting capacity is a further key challenge. Alternatively, some MGA entrepreneurs would prefer a softer landing, availing themselves of the varied choice of existing MGA platforms to align themselves with. They would welcome the option to join a successful player that complements what they are looking to achieve. This may well provide an incubation structure with many of the regulatory, capital, capacity, and infrastructure capabilities ready to plug into, allied with a true ownership and equity model structure.

The scope of an insurance underwriting executive’s ambition is likely to be informed by their level of experience, capability, and the environment they’ve cultivated throughout their career to date. These will differ from person to person – and that’s even before personal factors come into play. However, what characterises those MGA entrepreneurs who go on to be successful is their ability to combine ambition with execution and practicality, leveraging strengths while addressing challenges, and staying adaptable in an ever-evolving market.

So, what type of MGA Entrepreneur are you?

At 20Twenty Search, we partner with a select group of preferred MGA and MGU platforms across Europe, Bermuda, and the U.S. markets. We work closely with executives exploring the MGA journey, providing tailored advice on the range of opportunities available. Our goal is to align you with the right partner, ensuring a strategic fit that supports your vision and long-term success.