MGA Insurance Software Guide: Faster Product Launch

MGAs 101: Delegated Authority Explained

A managing general agent (MGA) underwrites insurance on behalf of carriers that it doesn't own. The carrier provides the capacity and keeps the risk on its balance sheet. The MGA brings the underwriting expertise, the product and the distribution.

The arrangement that makes this possible is delegated authority. Through a binding authority agreement (at Lloyd's, the MGA is called a coverholder), the carrier grants the MGA the right to quote, bind and issue policies on its behalf, within limits the carrier sets:

• What and where: classes of business, products, wordings and territories
• How much: maximum sums insured, limits per risk and the binder's total premium capacity
• At what price: the rating basis, and how far the MGA may deviate from it
• When to refer: risks outside authority go back to the carrier's underwriters for a decision
• Claims: sometimes the MGA, or a TPA, also settles claims up to an agreed amount

In return, the MGA earns commission, often with a profit commission on top. It reports everything it writes back to the carrier through bordereaux, usually monthly and in each carrier's format, and carriers audit their binders. Most MGAs hold several binders with different carriers, each with its own terms.

This model is growing fast. According to AM Best, US MGAs and other delegated underwriting authority enterprises wrote $108.7 billion in direct premiums in 2025, up 17.8% from $92.3 billion in 2024. At Lloyd's, delegated authority accounts for just under 40% of all business.

MGAs are valuable to carriers because they're fast and specialized. An MGA can launch cover for an emerging risk, such as AI liability or climate-related damage, far faster than a large insurer could build it internally.

That only works if the software keeps up. Systems built for carriers assume one balance sheet and long release cycles. MGAs need policy management, endorsements, renewals and claims management, plus the ability to launch products quickly, stay inside each carrier's authority and keep every carrier's reporting accurate.

What Features Does an MGA System Need?

MGAs operate in a very different way than traditional insurers.

They often deal with unique insurance products that can't be handled effectively by generic, one-size-fits-all tools. That's why MGA systems need to be more than standard claims and policy management software.

The right setup combines document management, seamless integrations and flexible customization, so your team can focus on growth instead of fighting with outdated tools.

Key features every MGA system should include:

Integration with Carriers

Because your authority comes from carriers, your MGA system needs to sync seamlessly with theirs.

But the scope of integration doesn't stop there.

A modern MGA insurance software should also connect with third-party software, such as accounting tools for premium reconciliation or compliance reporting. It should even reach into external data enrichment services.

For example, pulling vehicle information automatically by VIN number, or using geospatial data about land plots for property underwriting.

These integrations turn your platform into a comprehensive solution, reducing errors, saving time and giving underwriters and agents the accurate context they need to price and manage policies effectively.

This is why robust integration is the single most important feature an MGA system can have.

Customizability of the Software

No two MGAs are alike, which makes customization critical.

An MGA system has to adapt to your workflows, not the other way around.

Whether it's configuring underwriting rules, automating renewals or setting up document management for different product lines, flexibility is what makes the system work for your business.

A rigid platform slows down innovation everywhere, but the problem is especially pronounced for MGAs, whose edge depends on moving first.

Delegated Authority Controls and Bordereaux

Every binder comes with limits, and every carrier expects regular, accurate reporting.

Your system should check each risk against the binder's authority at quote time, refer anything outside it to the carrier, and record who bound what under which rules. Premium and claims bordereaux should come straight from the live book, in each carrier's format and on each carrier's schedule, rather than from a monthly spreadsheet exercise.

Tailored Dashboards

You also need visibility.

Tailored dashboards allow your team to track performance, monitor claims and identify opportunities in real time.

Instead of drowning in raw data, your MGA system should translate numbers into actionable insights.

Whether you're an underwriter, agent or operations manager, the dashboard should give each role exactly what they need to make better decisions, faster.

Here, too, customizability is key: tailor your agent portal screens so that each user sees only the most relevant information and tools.

Automation and Workflow Management

MGAs deal with numerous repetitive and compliance-heavy tasks. Automating workflows, from policy issuance to renewal reminders and claims triage, saves time and ensures process consistency.

A good system should support configurable automation rules, so your team can focus on higher-value activities like risk assessment and product innovation instead of manual data entry.

Scalability and Multi-Line Support

Successful MGAs often expand rapidly, adding new products or entering new markets. Your software must scale easily, supporting new insurance lines, currencies and carrier integrations without major redevelopment.

This flexibility ensures you can respond quickly to market demand and onboard new partnerships without disrupting existing operations.

Shipping MGA Products Faster With Openkoda

Traditional MGA software projects spend months on plumbing, such as authentication, access control, dashboards and baseline integrations, before anyone touches product rules.

Openkoda removes that step. It's a highly customizable, AI-enabled policy administration system that gives MGAs a complete platform from day one: product and rating, underwriting within authority, policy administration, claims, billing, commissions and bordereaux, all on one data model.

Three things make the difference in speed:

• The AI Product Builder. Describe a product in plain English or upload your requirements document, and the AI drafts the coverages, rating tables, underwriting rules, quote form and workflow. Underwriters review the change-set before anything is applied and test prices on sample risks straight away, so a product can be prototyped, shown to a carrier or a few brokers and refined in days.
• Configuration instead of code. Data models, rating, rules, workflows and documents are configuration your team controls. Every change creates a new version, so policies already bound keep their terms. Where configuration isn't enough, the platform is extended on the same foundations.
• Integration built in. REST APIs, webhooks and a submission API on every form connect carriers, brokers, payment and data providers, and an MCP server lets AI assistants work with the live book.

It runs on managed cloud or on-premise, with exportable configuration and data, and flat, published pricing with unlimited users.

How Openkoda Handles the Delegated Authority Model

Delegated authority is where generic systems struggle most, and where Openkoda is built to fit:

• Each binder runs on its own configuration. Products, rates, authority limits, commissions and bordereaux formats are set per binder, and a new program goes live beside the ones already writing.
• Authority is checked at quote time. Sums insured, occupancy, territories and referral triggers run as underwriting rules on every quote. Anything outside authority is referred to the carrier instead of quietly binding.
• Bordereaux come from the live book. Premium and claims bordereaux are generated on each carrier's template and cadence, and the submit, accept and dispute cycle is tracked per program, with capacity used against each binder.
• Commissions are tracked at the source. Producer commissions, ceding fees and profit share are calculated against the same policy records.
• Everything is auditable. A full audit trail shows who quoted, referred, bound and changed what, under which rules.

Building MGA Insurance Software With Openkoda: Practical Example

Imagine your MGA has secured a binder to write cyber insurance for small e-commerce businesses. It's a growing market, but the risks change faster than traditional insurers can update their products.

First, your underwriters write the product down as they normally would: coverage tiers, exclusions, rating by revenue and online transaction volume, and the binder's conditions. The AI Product Builder turns that document into the product, rating tables, quote form and underwriting rules, including authority limits such as referring any business without multi-factor authentication. The team reviews the change-set and prices a few test businesses.

Next, you connect the data and the partners. A cybersecurity rating provider scores each applicant's website through the API at quote time, and bordereaux are set to the carrier's template and monthly schedule.

Then you open distribution. Brokers get a portal and a branded quote form, a partner platform quotes through the submission API, and dashboards show underwriters and the carrier how the program is performing.

Within weeks, the program is live and reporting to the carrier. When the market shifts, a new exclusion or a pricing change is a new version, reviewed and published by your own team.

Here's the AI Product Builder turning a requirements document into a configured insurance product:

To see how Openkoda can support your MGA and your binders, book a personalized demo:

Openkoda Demo