BMO Capital Markets analysts said the property and casualty insurance market share in the MGA sector will accelerate to about 7% in 2025, with the overall MGA market growing 19% to about $94 billion, a slight slowdown from the 21% growth reported in 2024.
Analysts note that excluding crop insurance, the slowdown is even more pronounced, from 22% growth in 2024 to 16% in 2025.
BMO estimates that $72 billion of that (about 76% of $94 billion) may not be related to E&S, and the remaining about 24% may involve the E&S/wholesale market. Analysts noted that E&S growth did not drive MGA’s overall growth, as the E&S portion of MGA’s market share remained stable in 2025 compared to the previous year.
BMO analysts added that large brokers continue to “program” the property insurance market/MGA-U and eliminate intermediary carriers. The three largest wholesalers, RYAN, AmWINS and Brown&Brown, currently account for approximately 7% of the MGA market, compared with approximately 6% in 2024. MGA products from these brokers have grown by nearly 50%, and MGA incubation platforms such as Accelerant are also leading the expansion.
“We believe this trend towards experienced broker-owned MGAs has long-term fundamentals, driven by entrepreneurial underwriting talent seeking to marry a broker in order to obtain greater compensation (on average) than they would receive in a more traditional insurer or common brokerage arrangement,” BMO analysts said. “Given that MGAs/MGUs carry the majority of underwriting business, they are able to charge carriers (or balance sheets that bear the risk) 15% more than in traditional arrangements. The above fees, we believe, will affect some economics of insurance companies in the long term. While the stock market currently believes that insurance brokers may one day be negatively affected by AI-led disintermediation, we point out that the reality is that insurance brokers continue to capture more value in the insurance value chain.
“Even highly successful ‘old school’ insurers such as WRB, who have been reluctant to drop their pens, now do hundreds of millions of dollars of business with MGA; Kinsale is one of the only commercially focused insurers in BMO’s coverage not to drop their pens.”
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