European MGA market growth is outpacing US and global benchmarks: Howden Re

In a new report, Howden Re reveals that the European Managing General Agent (MGA) ecosystem is growing at a five-year compound annual growth rate (CAGR) of approximately 23%, outpacing both US and global benchmarks.

There are over 650 MGAs across Europe with approximately €18 billion in gross written premiums in 2024 alone, which makes the market’s potential substantial yet largely untapped.

Howden Re, the global reinsurance, capital markets and strategic advisory arm of Howden, in its report titled “Agents of Change,” explores the European MGA atmosphere, aiming to demystify the European model, shedding light on MGAs’ market position and investment potential.

Traditionally, performance charting of the European sector has lacked clarity due to variations in definitions, diverse regulatory approaches, and a complex operating landscape.

However, the report reveals that the model has emerged as a high-performance, technology-led channel for underwriting complex and underserved risks, particularly in an environment where local platforms have become critical for markets, including London, to gain distribution access.

Stephen Greener, Chief Executive Officer, Howden Re Programs, commented, “We are proud to release this first-of-its-kind report which democratises data and insights across European MGAs for the benefit of the wider sector.

“The market has evolved dramatically over the past two decades with all signs pointing to continued growth and innovation. Our findings confirm that MGAs are a central force in insurance distribution and product development across Europe. This report is designed to equip both carriers and MGAs with the insight needed to navigate and lead that transformation.”

The report reveals MGAs are deploying AI-based triage, proprietary pricing engines and API-integrated claims to unlock risk selection at scale, with a focus on product portfolios across cyber, ESG, financial lines and parametric risk.

According to the report, capacity demand is driving a material opportunity for potential fronting carriers, as reinsurer appetite outpaces insurance paper supply, opening the door for hybrid capital structures and cross-border scaling, explained Howden Re.

As the European MGA market continues to mature, growth will hinge on long-term partnerships, regulatory adaptability, and access to scalable capacity solutions. Howden Re stated, “Success will increasingly depend on the ability of carriers and MGAs to align around data-led underwriting, regional expertise, and flexible capital structures that can respond to a rapidly evolving risk landscape.”

It should be noted that despite a clear opportunity; local execution, with regional regulatory knowledge, localised distribution networks, and underwriting discipline are crucial differentiators.

Some key regional findings of the reinsurer’s report show that the Benelux region, which has over 180 MGAs, is one of Europe’s most established markets, supported by strong regulatory frameworks and data transparency, particularly in the Netherlands. The regional total premium is estimated at €3.5 billion, of which €1.17 billion is estimated as first-party MGA business.

Italy’s MGA market includes over 100 players, with the top 20 holding significant market share. The region has €2.6 billion in gross written premiums (GWP), driven by specialisation in financial lines, surety and specie, and digital distribution, despite the absence of a dedicated MGA regulatory definition.

Germany’s 60–70 MGAs are valued for speed and niche innovation, with around €950 million in GWP. Meanwhile, France has approximately 80–85 MGAs and €900 million in GWP. However, the report specifies that French MGAs are not recognised in the national regulatory framework as a standalone category.

Howden Re explained that around 60–70 MGAs operate in the Nordics with €750 million in GWP, led by mature markets in Sweden and Denmark. Others, like Finland and Norway, are smaller but gradually gaining traction, with particular focus on niche specialty lines.

Lastly, Spain and Portugal host around 80–85 MGAs with €320 million in GWP, increasingly focusing on financial and specialty lines. Spain is moving past historical regulatory constraints; for Portugal headquartered MGAs, this offers more flexibility, including the ability to operate broadly throughout the European Economic Area (EEA).

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