MGA vs. Broker: Breaking Down the Difference for Simple Insurance

You may have encountered the term MGA (Managing General Agent) and wondered—what exactly is the difference between an MGA and your insurance broker?

At Stratis Insurance, we believe insurance should be simple, not confusing. As your educator, let’s break down these two roles in a way that actually makes sense!

What is a Managing General Agent (MGA)?

Think of an MGA as the middle ground or the “backstage crew” that ensures the insurance show runs smoothly. MGAs have special, delegated authority from large insurance companies.

What an MGA does:

• Underwrites and Issues Policies: They can issue policies directly to clients on behalf of the insurance company.
• Manages Claims and Risks: They often handle claims and evaluate risks, particularly for specialized or niche types of coverage that traditional insurers might not provide.
• Specializes: They typically specialize in specific lines of coverage, such as commercial liability or unique optional auto insurance programs.

What is an Insurance Broker? (Stratis Insurance)

An insurance broker (like us!) is your personal insurance expert. We don’t underwrite policies or handle claims directly. Instead, we are your trusted insurance matchmaker.

What an insurance broker does:

• Provides Expert Advice: We guide you through different insurance products and coverage options.
• Compares Coverage: We shop around and compare options from multiple insurers to find the best fit for your needs.
• Manages the Relationship: We assist with policy renewals, updates, and changes throughout the life of your policy.
• Advocates for You: We advocate for you during the claims process, ensuring you get the support you need.

Case Study: Why Your Broker Matters During Industry Shifts

Insurance companies sometimes change their operational structure, which is a normal occurrence in the industry. For instance, in 2024, a Managing General Agent, such as Stratford Underwriting, wound down their operations, meaning the optional auto policies they previously managed were transferred to be handled directly by the underwriting insurance companies.

This case study perfectly illustrates the value of the broker:

• Coverage Continuity: Because we are the broker, we ensured that the client’s coverage remained unchanged and there was no interruption in their policy.
• Simplified Navigation: We immediately stepped in to communicate the change, advising clients on the new direct contact points for claims and support.
• Ongoing Support: As your broker, Stratis Insurance continued to provide expert advice, coverage reviews, and support whenever clients needed it, regardless of the behind-the-scenes shift.

This is exactly why having a trustworthy insurance broker matters—when things shift behind the scenes, we’re here to help you navigate the changes smoothly and ensure your protection continues.

At Stratis Insurance, we continue to be your go-to broker, guiding you through policy updates, renewals, and claims so you always have the right coverage at the right time.