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Glossary

MGA vs MGU

  • Managing general agent vs managing general underwriter

MGAs distribute and often underwrite on delegated authority; MGUs typically focus on underwriting capacity for programs without owning the full distribution stack.

What it is

The labels overlap in practice, but buyers usually distinguish MGAs by their distribution and program-building role and MGUs by their underwriting factory role for third-party paper.

How it works

Contracts—not titles—define duties: pricing, binding authority, claims handling, and bordereaux responsibilities should be explicit in the underwriting management agreement.

Why it matters

Procurement teams shortlisting platforms need to know whether they are buying distribution workflow, underwriting workbench depth, or both.

Common pitfalls

Assuming the acronym matches the contract is a classic sourcing mistake—validate obligations against the agreement and filings, not the marketing deck.

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