From Binder to Builder - Why smart MGAs invest in underwriting strategy & portfolio health

The MGA sector is booming.

With nimble operating models, specialist knowledge and deep broker relationships, MGAs are reshaping the insurance landscape - offering insurers access to niche markets with speed and efficiency.

But with growth comes risk.

Without a clear underwriting strategy and structured portfolio governance, even the best-performing MGAs can quickly run into challenges.

The Growing Pains of Success

As MGAs scale, we often see three common risk areas emerge:

Underwriting Drift

Without clear risk appetites and authority frameworks, portfolios can unintentionally drift into riskier or lower-margin segments.

Data Gaps

Many MGAs focus heavily on distribution and underwriting but lack robust portfolio monitoring, accumulation tracking or profitability analysis.

Operational Strain

As books grow, the processes that worked early on often struggle to cope - increasing error rates, leakage and governance issues.

Left unchecked, these challenges can erode MGA profitability, damage insurer relationships and make it harder to secure quality capacity.

Practical Solutions for Sustainable Growth

The good news?

By investing early in underwriting discipline and portfolio visibility, MGAs can protect profitability and strengthen their market position.

At Storm Strategy, we help MGAs implement:

Clear Underwriting Authority Frameworks: Ensuring that every policy fits your target risk appetite.

Portfolio Health Checks: Reviewing portfolio performance, identifying emerging risks and surfacing new opportunities.

Risk Appetite Development: Defining the classes, segments and peril exposures that align with your strategic goals.

Exposure and Accumulation Management: Giving you (and your capacity providers) confidence in risk spread and aggregation controls.

Final Thoughts

In a hardening insurance market, quality matters more than ever.

MGAs that combine specialist distribution with disciplined underwriting and robust portfolio management will be the ones that thrive.

Storm Strategy partners with MGAs across Australia, New Zealand and the Pacific to build sustainable, high-performing portfolios - with frameworks and strategies tailored to your business.

If you're ready to sharpen your underwriting strategy and future-proof your growth, we’d love to help.