The right underwriter creates better outcomes

How Partnering with the Right Underwriter Creates Better Outcomes for Your Clients

If you’ve gone anywhere near insurance, chances are you’ve heard an “MGU” come up. Whether you know what that is or not, one thing’s for certain—it pays to make sure you’ve got the right one.

The MGU Basics

To start, it helps to know exactly what an MGU is. In simple terms, a managing general underwriter is a behind-the-scenes expert who helps insurance companies offer more tailored, efficient coverage. You’ll see them more often in niche or complex markets, blending underwriting expertise with extensive market knowledge to help insurers reach better outcomes without taking on all the heavy lifting themselves.¹

Unlike traditional agents or brokers, MGUs typically have the authority to:

Evaluate and underwrite risks based on guidelines set by the insurer
Develop and customize insurance products for specific markets or industries
Set premium pricing and manage claims (in some cases)
Handle policy administration and distribution

MGU vs. MGA

When you’re looking for an MGU, it’s also crucial to make sure you’re not looking at an MGA. A managing general agent is somewhat similar to an MGU, but there are key differences you’ll want to watch out for.

MGUs tend to be more underwriting-centric. You’ll see actuaries, data analysts, and industry specialists, all working to evaluate and price complex risks. MGUs usually serve more specific markets, like medical stop-loss, cyber liability, or other areas where a deep understanding of underwriting is critical.

MGAs, on the other hand, usually offer a broader range of services. In addition to underwriting, they might handle marketing, policy administration, customer service, and sometimes claims. Since they operate across a wider spectrum of insurance, they won’t have the same degree of specialized knowledge that MGUs do.²

The Benefits of Finding the Right MGU

There are several reasons it’s important to have an MGU, but some of the top ones include:

Specialized expertise for tailored solutions
Streamlined operations for greater efficiency
Lower overhead costs and greater savings
Flexibility to adapt to changing market conditions

But to actually see any of those in reality, you need an MGU you can rely on—an MGU that works for you. As a leading MGU with four decades of experience, we understand that the best relationships are built on trust. Each business is unique, and it takes a partner who understands the nuances of building strategic plans and can deliver on the needs of each client.

There’s no one-size-fits-all for risk management. At RMTS, we pride ourselves on serving as expert architects that craft a plan tailored to you. Our track record speaks for itself—it pays to partner with an MGU that cares.

Sources:

The MGU Advantage