Earlier this year, Gallagher Bassett’s (GB) Carrier Practice conducted our first MGA/PA Insights survey to uncover the challenges and opportunities facing MGAs, MGUs, program administrators (PAs), and carriers. The results are in, and the key areas of focus include acquiring talent, leveraging AI, improving service quality, and addressing challenges in claims management and premium growth.
Additionally, respondents shared their priorities for measuring key performance metrics in claims management success, top customer satisfaction drivers, and how they are adapting to use AI in their operations. Download our MGA Market Pulse Infographic.
We are excited to share a few key insights from the responses we received to help our audience enhance their understanding of this dynamic marketplace and learn how our dedicated Carrier Practice can support your ability to stay ahead in 2026 and beyond.
Challenges & Threats to Premium Growth
Key Insight: According to the survey, nearly half (48.6%) of respondents identified recruiting and retaining talent as the leading barrier to premium growth.
When it comes to attracting and retaining talent to support growth, MGAs, MGUs, and PAs face industry-specific demands, competitive pressures, and evolving expectations in the insurance sector that challenge their ability to maintain adequate resourcing while sustaining lean operational capacity.
Moreover, limited access to talent with the right specialty expertise can make it difficult for MGAs, MGUs, and PAs to harness new opportunities and achieve client expectations.
As the insurance industry continues to evolve, so does the skill set needed to successfully manage its various challenges and capitalize on diversifying growth opportunities. From leveraging technical expertise and data-driven insights to delivering customer service excellence, an effective way to ensure access to the right talent at the right time is to lean on a strategic partnership that provides a deep pool of resources.
GB’s dedicated Carrier Practice is designed with the talent dilemma in mind, building a program that attracts, develops, and retains top talent to benefit our clients. Partnering with an industry-leading provider like GB offers more than a stopgap for staffing; it’s a long-term strategy for future-proofing operations. The right partner not only provides access to a wider range of talent but also maintains training and development, significantly reducing operational costs.
Beyond finding and retaining talent, there is also a shortage of available specialty expertise, especially the required deep technical expertise needed to help MGAs, MGUs, and PAs build their portfolios, reflected in the 40% of respondents who identified expertise in underwriting and claims as a major challenge. Without this expertise, MGAs, MGUS, and PAs may be challenged in taking advantage of opportunities for growth and successfully achieving the goals of clients whose needs require specific capabilities.
A strategic partnership can also assist MGAs, MGUs, and PAs in managing the complexities of compliance in an ever-changing regulatory environment. Claims and risk management partners, such as GB, are at the forefront of these changes and are uniquely equipped to adapt operations to meet new compliance requirements, eliminating the need for resource-heavy in-house legal teams and freeing up internal resources to focus on strategic goals.
Additionally, respondents noted that legacy IT systems (22.9%) are hindering operational efficiency. Technology plays a key role throughout the claim life cycle, providing essential performance insights that inform decision making, but with stricter regulations and costly new systems, maintaining best-in-class RMIS system is not always possible. Despite this, keeping pace with technological advancements is instrumental for carriers, MGAs, MGUs, and PAs looking to maintain their competitive edge.
Partner sourcing is one avenue to avoid such costs while still gaining access to superior systems and platforms. GB’s award-winning RMIS platform, Luminos, offers cutting-edge benchmarking and reporting capabilities that provide actionable insights into program performance.
AI: High Uptake with Under Investment
Key Insight: Our survey found a strong majority (61.3%) of respondents reported using AI, but only 35.5% said they were actively budgeting for AI tools.
There’s no doubt that generative AI has become a crucial tool for efficient and accurate underwriting for organizations of all sizes. But despite the adoption of AI within the insurance landscape increasing, there is a clear disconnect between AI utilization and resourcing with nearly two-thirds of respondents having no formal allocation of AI resources to invest in these tools for the long term.
In an industry that relies heavily on accurate, timely, and targeted data for underwriting, these emerging technologies have their benefits, but the funding gap for keeping up with these often-costly systems and solutions could be the difference between staying ahead or falling behind the innovation curve.
This is frequently compounded by an enhanced regulatory environment that requires such technology to not only integrate but also be flexible and customizable. For many MGAs, MGUs, PAs, and carriers, this cost may not be feasible, especially when balancing internal business goals and growing customer expectations.
Leveraging the cutting-edge technology and expertise of a trusted claims and risk management partner allows MGAs, MGUs, and PAs to stay aligned with industry best practices without absorbing the entire cost burden of AI adoption.
At Gallagher Bassett (GB), we believe AI’s significant opportunity lies in empowering Resolution Managers (RMs) to deliver superior outcomes for our clients and claimants. With the right AI tools, human expertise is enhanced and placed at the forefront of strategic AI deployment.
We offer our partners a suite of digital innovations that ensure they stay ahead of AI and emerging technologies. This includes our award-winning RMIS system, Luminos, which delivers data-driven insights and AI-powered claim summaries in seconds, SMART Benchmarking, and predictive analytics.
Our commitment to innovation is reflected in our generative AI journey, which is centered on developing a suite of tools designed to simplify and enhance everyday claim routines. By leveraging innovative technology, we aim to streamline processes, boost efficiency, and elevate the overall experience for our clients.
Outsourcing: Trends & Influences
Key Insight: Our survey found that 58.1% of respondents were outsourcing some claims management, while 41.9% were managing all claims in-house.
According to our survey, claims management outsourcing is driven by the need for expertise and cost efficiency, and many organizations are currently seeing benefits from leveraging strategic partnerships.
The landscape for MGAs, MGUs, and PAs is entrepreneurial and ever-changing, making a successful claims operation key to outpacing the competition. There has never been more pressure to grow profits, develop new products, expand in markets, and keep pace with technology— without even mentioning the core goal of exceeding customer expectations. Amid such complexities, it is no surprise that organizations are increasingly leveraging strategic claims partnerships to reduce the cost of claims and secure better outcomes.
GB delivers superior risk management and claims outcomes through a high-performing and highly specialized claims management function. We strive to help MGAs, MGUS, and PAs successfully navigate a crowded carrier marketplace with confidence and achieve sustained success through our specialized expertise and best practices approach to claims management.
By engaging a trusted claims and risk management partner like GB, MGAs, MGUs, and PAs, and their carrier partners can:
- Access a pool of skilled professionals that act as an extension of existing teams, providing immediate capacity and specialized expertise without the lengthy recruitment and onboarding cycles. GB’s professionals bring industry-specific knowledge and proven methodologies, ensuring seamless integration into your operations and delivering measurable improvements in efficiency and outcomes.
- Benefit from continuous investment in training to ensure staff are ready to perform at a high standard. Our team undergoes rigorous, ongoing training in compliance, technology, and industry trends, ensuring they are equipped to handle complex claims and mitigate risks effectively.
- Enhance operational flexibility with scalable support, enabling smaller operations to respond quickly to peaks in claims volume or new lines of business without straining internal resources. With scalable solutions, MGAs, MGUs, and PAs can confidently pursue growth opportunities, knowing they have the operational bandwidth to support new revenue opportunities without compromising service quality.
- Retain institutional knowledge with a consistent team who provides continuity of service and minimizes the disruption caused by turnover. Our commitment to long-term partnerships ensures that your business benefits from a team that deeply understands your processes, priorities, and goals, reducing the learning curve and enhancing service consistency.
GB has a proud history of helping carriers, MGAs, MGUs, and PAs navigate the complex world of claims management and stay ahead of the competition. Find out how our dedicated Carrier Practice can help you seize new opportunities for strategic growth and achieve superior outcomes by connecting with our experts.
Download our MGA Market Pulse infographic to review the full results.
