Managing general agents and coverholders are specialist firms that act on behalf of insurers under delegated authority. They are a growing part of the market, and knowing their role helps you understand who you are really dealing with.
What an MGA does
An MGA can underwrite, price, and handle claims for an insurer, often within a niche. The insurer carries the risk and is the entity you contract with, but the MGA runs the day to day. Our explainer on who does what covers the wider chain.
Coverholders
A coverholder is appointed to enter into contracts of insurance on an insurer’s behalf, commonly in a specific region or class. Delegated authority is supervised by the insurer and, for Lloyd’s, by the Lloyd’s market.
Why it matters to you
If a claim or sale goes wrong, the insurer remains responsible, and the complaints and Ombudsman routes still apply. Our guide to complaining about an insurer explains who to hold to account.