Building a Winning P&C Distribution Strategy for Your MGA

Chris Lowell, Managing Director at InnSure and Alexis Vaughn, insurance distribution expert and CEO of Off Course Consulting return with a second video for Insillion’s MGA101 series to unpack the initial steps involved in creating a strategic distribution plan as an emerging MGA.

Why Early Distribution Planning Is Critical for MGAs 

Below is a typical (grossly oversimplified) checklist an aspiring MGA founder might draft when planning to launch their MGA: 

1. Develop Product 
2. Build or Buy Technology 
3. Secure Capacity 
4. Create a Distribution Strategy 

While the items appear to be logically ordered, Alexis advises that distribution planning should be moved higher up the list—even before seeking capacity, in some cases. 

Once capacity is secured, the MGA is expected to get its product to market as soon as possible. Without a well-defined plan in place, many MGAs pause at this stage. 

While most possess the expertise it takes to develop their insurance product or technology, they may lack the understanding needed to build an equally effective distribution strategy. Hiring or partnering with the right team of distribution specialists is imperative to hit key milestones smoothly, and having an 18-month distribution plan from the get-go is Alexis’s recommendation to achieve that. 

Engaging with distribution partners early, getting their inputs during the product development phase and tweaking products as necessary can go a long way—not only does this make the MGA’s product more market ready, it builds trust, increasing the odds of said agents and brokers being early adopters and advocates for the product when it first launches.  

Arranging multiple meetings or demos with distribution partners is not an adequate substitute for the deep networks and connections distribution consultants bring to the table, explains Alexis. Their association with a program lends credibility to the MGA’s business strategy and strengthens market confidence in its products. 

Launching an MGA vs. Partnering with an MGA vs. Partnering with a Carrier 

Hiring or partnering with agents and brokers isn’t the only way for insurance product innovators to get their products to market. For distribution, They can also choose to white label their products through a carrier or partner with an established MGA. 

For innovators who are new to the insurance industry and lack in-house expertise, partnering with an existing MGA can feel like a more strategic comfortable starting point. In these cases, Alexis advises having a clear, airtight contract, with a clear understanding of the value each party brings—ensuring the established MGA sees equal benefit in the relationship. 

Another route is white labeling through a carrier. While launching an MGA can take 12–18 months, going live via a carrier may extend the timeline to 2–3 years. 

Ultimately, the choice depends on what aligns best with the innovator’s business model and internal capabilities. Aspiring MGA founders should evaluate all business models before selecting the one that fits their operational readiness the best. 

MGAs, distribution partners, and distribution agencies are all distinct entities, each with different functions—so having clarity on who actually qualifies as an MGA and what role they play is crucial during this evaluation. 

Where and How should MGAs Approach Distribution Partners? 

If an innovator chooses to set up an MGA, here’s a more relationship-driven approach to securing distribution partnerships—one that goes beyond mass email outreach and simply hoping that agents and brokers take interest.

Attending events and conferences and being part of associations where trust has already been built is a great way to make connections—MGAs should join aiming to educate and be meaningfully involved in their committees rather than expect new business immediately. Here are Alexis’s top recommendations for associations to join: 

1. Big I Regional-State Specific groups
2. WSIA for Top 100 Brokers
3. PLUS National & Regional Level Groups
4. Big National (Catalyit Group)
5. Keystone Conference  

The person on the MGA’s team leading these efforts must fit naturally into the distribution space and should be able to speak the language of the insurance agents and brokers.