Challenges MGAs Need to Look Out for in 2026

💡 What Challenges MGAs Need to Look Out for in 2026

As the MGA market continues to grow in both influence and competition, 2026 is shaping up to be a defining year. Between tightening capacity, new regulatory scrutiny, and accelerating technological change, MGAs will need to stay nimble and proactive to stay ahead.

Below, we’ve outlined the biggest areas of change—and opportunity—MGAs should prepare for in 2026.

🏦 Capacity Concerns: Proving Your Value to Carriers

Securing capacity is at the heart of every MGA’s business model. But with reinsurers re-evaluating exposures and carriers becoming more selective, capacity is no longer guaranteed.
MGAs that can demonstrate disciplined underwriting, strong portfolio performance, and reliable data quality will be best positioned to retain their partnerships.
Investing in advanced analytics and transparent reporting will also help strengthen trust between carriers and MGAs.

⚖️ Regulation & Compliance: AI, Data, and Oversight

Regulators are turning up the heat. From Ontario’s upcoming MGA-specific rules to new U.S. data privacy and AI-governance laws, oversight is expanding globally.
The use of artificial intelligence in underwriting will face increased scrutiny to ensure algorithms are explainable, auditable, and bias-free.
In addition, MGAs must manage fourth-party risk—vendors and outsourced services that handle sensitive data—and stay aligned with privacy regulations such as GDPR and state-specific frameworks.

🌎 Evolving Risk Landscape: Climate, Cyber, and Geopolitics

The world’s risk profile is changing fast.

• Climate-related losses are rising in both frequency and severity, driving demand for better catastrophe modeling and localized risk data.

• Cyber threats continue to grow more sophisticated, especially with the use of AI-driven attacks and deepfakes. MGAs that adapt their product offerings to these evolving threats will remain relevant.

• Geopolitical instability and trade-policy shifts can disrupt global supply chains—impacting underwriting assumptions, pricing, and consumer confidence.

⚙️ Technology & Operational Gaps

Despite advances in automation, many MGAs still rely on legacy systems and manual workflows. These inefficiencies slow speed-to-market, increase error rates, and limit scale.
In 2026, underinvestment in technology won’t just be a setback—it could be a competitive risk. MGAs embracing intelligent automation, AI-assisted workflows, and integrated quoting platforms (like Semsee) will gain the operational edge.

👩‍💻 Talent and Culture

The war for insurance talent isn’t slowing down. MGAs need data scientists, AI experts, and compliance specialists—roles that are in high demand across the industry.
Creating a strong internal culture that values innovation, flexibility, and continuous learning will be key to attracting and retaining this next generation of professionals.

💰 Economic Pressures

Finally, MGAs will need to navigate economic headwinds. Inflation, tariff changes, and rate fluctuations can all affect profitability.
Maintaining expense discipline, leveraging data-driven decision-making, and building diversified revenue streams will help sustain growth during uncertain cycles.

🚀 The Bottom Line

2026 will challenge MGAs to evolve—but it will also reward innovation. Those that leverage data intelligently, embrace regulatory transparency, and modernize their operations will emerge as the next leaders of specialty distribution.

At Semsee, we’re already seeing the next wave of MGAs turning to automation and AI to manage submissions, quote faster, and unlock better carrier partnerships. The future belongs to those who build smarter, faster, and more connected.