Collaboration is growing between MGAs and InsurTech firms in Asia, particularly in the cyber insurance space, MNK Group’s Mr Manoj Kumar said to Asia Insurance Review. This plays into the ability of MGAs to offer specialised products for specific industries and risks.

Managing general agents (MGAs) are able to “provide faster turnaround times for clients”, as there is no need to go back and forth with insurers for underwriting decisions, unlike brokers, according to MNK Group chairman Manoj Kumar.

This is because MGAs are agencies that have been “delegated underwriting authority under the terms of a binding authority agreement from (re)insurers, meaning they can underwrite and manage policies without waiting for an insurer’s decision”, he told Asia Insurance Review.

“As a result, unlike brokers who shop for standard policies and/or support from reinsurers, MGAs can customise coverage based on the specific and bespoke needs of their clients,” he said.

“Furthermore, MGAs can specialise in niche or high-risk sectors, where standard insurers and brokers may lack expertise and struggle to find coverage.”

MGAs in Asia

Over the past year, Mr Kumar has observed an increase in MGA activity in Asia, as activities continue expanding out of crucial markets in the US and the UK.

And although many countries in Asia have regulations covering the MGA model, he believes Lloyd’s has nevertheless engaged with regulators in the continent to discuss how coverholders in the UK market are regulated, promoting the adoption of similar models in the region.

“In addition, Labuan, Malaysia, has not only solidified its position as a leading captive centre in Asia but has become an attractive place for MGAs to form and grow over the last year. Labuan operates within a clear and comprehensive legal framework, enforced by one regulator, the Labuan Financial Services Authority,” he said.

“This has provided MGAs with a predictable and stable environment, making it easier for these groups to do business.”

Mr Kumar has called the jurisdiction’s regulatory framework “positive” as well, saying that the dynamic and developing market has allowed his company to maximise growth and offer products to clients across Asia and the rest of the world.

He also noted that the Hong Kong and Australian MGA spaces were heating up as well.

The market is growing too in other parts of Asia Pacific. For instance, Global Insurance Law Connect’s report published in October 2024, “Innovation abounds opportunities for growth in the global MGA market”, found that MGAs were gaining ground in financial centres such as Beijing, Shanghai and Shenzhen, in China.

The report noted increased MGA innovation in insuring uninsurable homes due to climate change crucial. The report said, “Specialist flood risk mitigation products and new parametric covers are being brought to market under MGA cover, supporting initial efforts to resolve this emerging property insurance challenge.”

Some advantages

As MGAs in Asia are often more specialised and agile than larger insurers, Mr Kumar believes the former are able to focus on niche markets and hard-to-place risks that more traditional firms struggle to access.

“Those that offer specialised products for specific industries and risks are doing well,” he said, noting that over the past year clients have reaped the benefits of being able to talk to experts about innovative solutions to unique and niche risks.

One reason for this, Mr Kumar said, was hiring practices that targeted people with “deep knowledge and expertise in particular sectors”.

An emerging trend

When asked to name some emerging trends surrounding MGAs in Asia, Mr Kumar was quick to point out the rising collaboration between agencies and InsurTech firms, particularly in cyber insurance. He said, “With an increase in cyber crime across Asia over the last year, MGAs have worked with InsurTech firms to develop specialised cyber insurance solutions, including AI-powered risk assessment tools to adjust coverage based on a company’s digital footprint.” 

Opportunities and challenges

According to Mr Kumar, one of the larger challenges facing MGAs in the region was the “fractured regulatory landscape across Asia, with each country having its own licensing requirements and compliance obligations”.

“Whilst some areas like Singapore and Hong Kong have clear regulatory frameworks, others have more evolving policies,” he said.

“Coupled with this, numerous Asian regulators require MGAs to have minimum capital and solvency margins similar to traditional insurers, (which is) particularly challenging for newer MGAs.”

As a result, Mr Kumar believes it’s important for MGAs to have localised compliance teams, in order to keep track of local regulations.

Collaborating with (re)insurers to gain financial backing can help new MGAs in Asia enter the competitive market as well, he said.

Opportunity for the traditional insurance industry

Said Mr Kumar, “MGAs in Asia have acted as both a challenger and partner to the traditional insurance industry. This is positive for clients, insurers and the overall health of the Asian market.”

When asked what some short- and long-term implications were for the traditional insurance industry, he highlighted lower overheads among MGAs, which means they can often challenge larger competitors on price in the short term.

Despite this, Mr Kumar believes traditional insurers could turn this challenge into an opportunity by seizing the chance to innovate and improve offerings. “In the longer term, by helping insurers to access new markets and industries, MGAs also offer growth opportunities,” he said.

In short, according to Mr Kumar, a reward insurers may gain if they successfully partner with an MGA is “greater reach, an enhanced and more innovative product offering and streamlined operations that save on costs”.
To do so, he recommended that insurers choose MGAs with a strong team of professionals, deep expertise in their respective sectors and significant experience in the Asian market.

The future

As insurance markets in Asia will continue to be significantly disrupted by the adoption of AI for tasks such as data analysis, MGAs will also increasingly use technology to drive underwriting decisions and enhance customer service. As a result, according to Mr Kumar, “they will need to balance the potential of these technologies against the heightened regulatory risk they present”.

This article first appeared in the April 2025 edition of the Asia Insurance Review