Key global insights across borders

In the UK, an MGA must either be directly authorized by the Financial Conduct Authority (FCA) or operate as an Appointed Representative (AR) under the umbrella of an FCA-authorized principal firm. MGAs placing business at Lloyd’s also have to hold Coverholder status, which is granted by Lloyd’s and requires compliance with Lloyd’s minimum standards. The FCA doesn’t recognize “MGA” as a distinct regulatory category; rather, MGAs fall within the broad class of insurance intermediaries.

Austria doesn’t have a dedicated MGA category. MGAs must be licensed as either insurance agents or insurance brokers, depending on the relationship with the insurer(s) and degree of independence from any single carrier. As well as representing policyholders, a broker can underwrite on behalf of multiple insurers and would also be entitled to manage claims. An insurance agent acts exclusively for one insurer, which is liable for the acts and omissions of the agent.

Belgium recognizes “mandated underwriters” (gevolmachtigde onderschrijvers / mandataires) as a distinct intermediary category, authorized and supervised by the Financial Services and Markets Authority (FSMA). 

Denmark doesn’t have a dedicated MGA category. Insurance intermediaries, including those performing MGA functions, must register as insurance agents or insurance brokers with the Danish FSA.

Estonia classifies insurance intermediaries as either Insurance Broker Companies (IBCs) or Insurance Agent Companies (IACs), supervised by the Estonian FSA. IACs aren’t permitted to offer similar products from multiple insurers.

IBCs are prohibited from binding insurers or making underwriting decisions, but they can enter into cooperation agreements on operational aspects such as invoicing, IT systems, data protection, and communications.

There is no dedicated MGA category. For MGA-type operations, the IBC model is generally preferred, in an “MGA-lite” model. IBCs cannot make underwriting decisions on behalf of insurers, but their operational capabilities allow them to approximate some MGA functions.

In Finland, entities performing MGA functions operate as insurance agents under the supervision of the Finnish FSA. There is no dedicated MGA classification. Agents operate under delegated authority from the insurer they represent. Finnish MGAs acting as agents act exclusively for insurers and cannot also act for policyholders.

There is no dedicated regulatory category for MGAs, so MGAs must register either as insurance brokers or insurance agents with ORIAS. Most MGAs choose to register as brokers, even though they actually represent the interests of the insurer rather than the policyholder. 

In Germany, MGA operations typically fall under the insurance agent classification, as agents act on behalf of and with the authority of one or more insurers, and are indirectly supervised by BaFin through its oversight of the insurers they represent.

An MGA may conduct regulated distribution activities without being licensed if it operates as a “tied agent” and conducts its activities exclusively on behalf of one or, if the insurance products are non-competitive, several insurance companies authorized to conduct insurance business in Germany. The insurance company or companies must assume unlimited liability for the tied agent’s distribution activities.

In Ireland, MGAs are classified as insurance intermediaries authorized by the CBI. The same authorization framework applies to MGAs as to other insurance intermediaries. 

MGAs must register in section “A” of the IVASS Registry. MGAs must comply with the same registration requirements as traditional agents, including professional qualifications and continuing education. Italian regulation requires strict separation between agent and broker roles, so an agent registered in Section A cannot simultaneously act as a broker (registered in Section E).

Like Estonia, Latvia’s insurance intermediary framework distinguishes between IBCs and IACs. An IBC operates independently and can arrange insurance with multiple insurers, while IACs aren’t permitted to offer similar products from multiple insurers.

Lithuania’s insurance intermediary framework also distinguishes between IBCs and IACs. IBCs can act on behalf of insurers and are entitled to carry out insurance distribution activities on behalf of either the insurer or the policyholder, and may distribute similar products of multiple insurers. However, the IBC must always act in the best interests of the policyholder. By contrast, an IAC may only act on behalf of and in the interests of one insurer.

In Luxembourg, MGAs are licensed by the CAA. They must be authorized as an insurance intermediary (broker or insurance agency), or registered as an ancillary insurance intermediary.

The Netherlands recognizes a specific category of gevolmachtigde agenten (authorized agents) who operate under delegated authority from insurers and are supervised by the AFM. The Dutch regime also provides for a collective license system, under which groups of related entities can operate under a shared authorization framework. 

Poland's insurance intermediary framework, supervised by the KNF, categorizes MGAs as either tied agents (acting for a single insurer) or multi-agents (who represent multiple insurers simultaneously). 

Portugal classifies MGAs as insurance agents under the supervision of the ASF. Insurance agents act on behalf of insurers and are authorized to distribute insurance products and, where delegated authority is granted, to bind cover on the insurer’s behalf.

Romania classifies MGAs as insurance agents under the supervision of the Romanian Financial Supervisory Authority. Romania also offers an appointed representative option for insurers operating on a Freedom of Services basis, which allows EEA insurers to work with local MGAs.

Agencias de suscripción (underwriting agencies) have traditionally been considered as the equivalent of MGAs under Spanish law and need prior regulatory authorization from the DGS. 

However, insurance agents (agentes de seguros, either legal entities or individuals), can, in practice, due to the flexibility of the distribution regime, undertake many of the typical activities associated with MGAs. These agents can carry out their activities on an exclusive or non-exclusive basis and must be registered with the DGS. 

There is no specific MGA authorization framework at the federal level, and MGAs typically operate under licensing frameworks applicable to insurance agents and brokers in each province. Specific MGA authorization is, however, required in the province of Saskatchewan, making it a notable exception.

The insurance regulatory framework is state-based. Under a model law (Model Act) developed by the National Association of Insurance Commissioners (NAIC), an MGA only needs to be licensed as an “insurance producer.” Insurance intermediaries must obtain a producer license in each state where they conduct business. There are, however, some states that require a separate MGA license in certain circumstances.

Australia doesn't have a dedicated regulatory category for MGAs. Entities performing MGA functions must hold an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investments Commission (ASIC), or operate as an authorized representative of an AFSL holder. 

Hong Kong also doesn’t have a dedicated MGA category. Entities performing MGA functions are licensed as insurance agencies. An insurance agency can represent a maximum of four insurers for general insurance, and a maximum of two for long-term insurance. 

New Zealand also doesn’t have a specific licensing regime for MGAs. Firms operating as MGAs may need to register on the Financial Services Providers Register, depending on the nature and scope of their activities. If an MGA provides “financial advice” to retail clients it may also need to be licensed as a Financial Advice Provider (FAP), or be an “authorized body” of another FAP. 

Singapore doesn't have a specific regulatory classification for MGAs. They can register as Authorized Reinsurance Brokers (ARBs) or General Insurance Agents (GIAs), or obtain a full broker license from the MAS. The choice of registration category depends on the scope of the MGA’s activities and its relationship with capacity providers.

Thailand doesn’t have specific legislation governing MGAs. The insurance intermediary framework provides for two categories: insurance agents and insurance brokers. Agent licenses are restricted to natural persons, meaning that corporate entities must obtain a broker license.

The UAE doesn't have an onshore MGA regime. MGA-type operations are conducted through two separate free-zone regulatory frameworks: the Dubai International Financial Centre, regulated by the DFSA, and the Abu Dhabi Global Market, regulated by the FSRA. Each regime has its own authorization requirements, regulatory standards and supervisory approach. DIFC and ADGM require MGAs to have an “Insurance Management” license, and allow combined MGA/broking licenses.

Registration with ORIAS can be completed in approximately two to three weeks. The process is primarily administrative, focusing on verification of professional qualifications and insurance coverage.

IVASS registration in section A typically takes two to three weeks.

The Bank of Latvia processes applications within approximately 30 days.

The KNF processes intermediary registrations within approximately 30 days.

The ASF must decide an application within 60 days from submission (or, if the file isn’t considered complete, 60 days from the date of submission of the requested documentation or clarifications).

Authorization from the ASF typically takes two to four weeks.

Singapore (insurance agent): Registration with the ARB can be completed within three to five days, although the GIA insurer member would likely impose their own vetting procedures before making the application, which may take three to six months. 

Insurance agent or broker licenses are issued upon completion of the requisite training and test. For legal persons seeking a broker license it may take a few weeks longer as the OIC must approve the company’s objectives (which takes seven days) and the directors must pass the requisite test.

The FMA typically requires approximately six weeks to process intermediary authorizations.

Authorization in Belgium typically takes approximately three months.

The Danish FSA processes applications within approximately 90 days.

Authorization in Estonia typically takes approximately three months.

Authorization in Finland typically takes approximately three months.

Authorization in Lithuania typically takes approximately three months.

The CAA processes intermediary registrations within approximately 90 days.

A FAP license will generally take 3-4 months to obtain.

Singapore Lloyd's Asia coverholder: To be registered as a Lloyd’s Asia coverholder, an application has to be submitted by a Lloyd’s Asia service company. Similar to the case of an insurance agent, while the registration with Lloyd’s Asia may take less than a month, the service company may impose their own vetting or review procedures before making the application, which may take three to six months.

The authorization process for insurance intermediaries in Spain typically takes approximately two to three months from submission of a complete application.

Licensing and registration with the local IHK usually takes three to four months and may be delayed where foreign professional qualifications need to be recognized.

The IA’s licensing process typically requires approximately six months.

CBI authorization typically takes approximately six months.

Singapore (broker): An application to the MAS will likely take six months or more, subject to the regulator’s case load.

In the ADGM, the process from application to final approval typically takes four to six months. In the DIFC, it typically takes four to five months.

FCA authorization for directly authorized firms can take up to nine months. The process involves detailed assessment of the applicant’s business model, governance, financial resources, and fitness and propriety of key personnel. The AR route can be faster but shifts supervisory responsibility to the principal firm.

German regulators have expressed discomfort with reverse branching arrangements, where non-EEA firms establish branches in EEA jurisdictions primarily to access the German market through passporting.

Gibraltar-authorized firms benefited from transitional arrangements post-Brexit, given Gibraltar’s unique constitutional relationship with the UK, and have continuing rights to access the UK market.

Hong Kong doesn’t participate in any passporting regime. There are no automatic cross-border rights, and entities must obtain local licensing.

New Zealand doesn’t participate in any passporting regime. MGAs must obtain separate authorizations in each jurisdiction where they wish to operate.

Singapore doesn’t participate in any passporting regime. MGAs must obtain separate authorizations in each jurisdiction where they wish to operate, though Singapore’s extensive network of bilateral agreements and its position as a leading financial center help facilitate cross-border activities.

Insurance agents can exercise EEA passporting rights but Spanish agencias de suscripcion cannot passport their services to other EEA states. This can require restructuring for MGAs seeking to use Spain as a base for EEA-wide operations.

Thailand doesn’t participate in any passporting regime. Intermediaries must obtain separate authorizations in each foreign jurisdiction.

The DIFC and ADGM don’t participate in any mutual recognition or passporting regime. MGAs authorized in these jurisdictions must obtain separate authorization in each additional market they wish to access.

There is no passporting regime in the US. Each state is a separate licensing jurisdiction, and a license in one state does not grant rights to operate in another.

ASIC operates an enhanced regulatory sandbox that allows eligible fintech and regtech businesses to test certain financial services without an AFSL for up to 24 months.

The FMA operates a regulatory sandbox. However, as MGAs aren’t supervised by the FMA (they’re supervised by an Austrian district administrative authority or home state supervisor if passporting into Austria), the sandbox isn’t currently available to MGAs.

The Danish FSA operates the FT Lab for testing innovative financial services concepts.

There is no specific insurtech regime, however the ACPR has launched a regulatory sandbox.

IVASS has introduced a sandbox framework to support insurtech innovation.

Both Latvia and Lithuania states have established sandbox frameworks.

Both Latvia and Lithuania states have established sandbox frameworks.

Romania and Spain have both introduced sandbox frameworks, though these are at earlier stages of development compared to, for example, the FCA’s sandbox.

Romania and Spain have both introduced sandbox frameworks, though these are at earlier stages of development compared to, for example, the FCA's sandbox.

The OIC has introduced a regulatory sandbox to support insurtech development.

The DIFC operates the Insurance Technology License (ITL) for testing innovative products, and the ADGM has its own fintech lab with similar objectives. Both provide reduced regulatory requirements during the testing phase.

The FCA's regulatory sandbox was one of the first globally and has supported numerous insurtech propositions.

There is no federal insurtech regulatory sandbox. Several individual states have, however, enacted their own sandbox legislation.

For licensees with total revenue from financial services provided to retail clients of AUD2 million or less, the minimum cover is AUD2 million for any one claim and in aggregate. Otherwise, the limit should be approximately equal to actual or expected revenue from retail financial services (up to AUD20 million).

As an alternative to complying with the IDD PII requirements, insurance agents can provide a guarantee of cover from an insurer they are working with exclusively, which fulfills the same terms as the statutorily required insurance.

The IA doesn’t impose mandatory minimum PII requirements on insurance agencies, though PII is strongly encouraged.

There is no mandatory PII requirement for insurance intermediaries, although industry bodies recommend it.

In addition to IDD-aligned PII requirements, Portugal imposes a minimum share capital requirement of EUR5,000, with a minimum own assets requirement of EUR2,500.

An insurance broker registered with the MAS must have minimum paid-up share capital of SGD300,000. A GIA-registered agent must have minimum capital of SGD25,000. Brokers must maintain PII under the Insurance Act 1966.

Insurance brokers must maintain paid-up capital of THB3 million. No mandatory PII requirement is imposed by the OIC.

The FSRA requires insurance intermediaries to maintain minimum capital of USD10,000 (on an expenditure basis) and PII coverage.

The DFSA requires insurance intermediaries to maintain minimum capital of USD30,000 (on an expenditure basis) and PII coverage.

FCA capital requirements depend on whether the firm holds client money. Firms that don’t hold client money must maintain as a minimum the higher of GBP5,000 or 2.5% of annual income. Firms that hold client money must maintain a minimum of the higher of GBP10,000 or 5% of annual income. PII is required for all FCA-authorized insurance intermediaries.

Rather than PII, many US states require MGAs to maintain surety bonds, typically in the range of USD100,000 to USD500,000.