Though A.M. Best remains bullish on the delegated underwriting authority enterprises (DUAEs) market, it remains cautious of the risk managing general agents (MGAs) bring to insurers.
In its latest market segment report, the rating agency said “MGAs provide a cost-effective way for (re)insurers to cover niche or emerging risks for a fraction of the investment required for carriers to establish in-house expertise.” MGAs may bind coverage, underwrite and