The Top MGAs in Canada | 5-Star Brokers on MGAs

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Niche experts

MGAs across Canada have had to battle to capture more business over the last 12 months, compared to 2023, with the best firms stepping up and succeeding.

IBC’s data shows that the number of brokers who gave less than 10 percent of their business to MGAs has risen from 26 percent to 32 percent, meaning there was a lower number of bigger shares for MGAs to service.

The broker responses to IBC also showed a similar spread between 2023 and 2024 on the number of MGAs brokers bid out with; however, the one significant change was in the three to five range, which underlines that brokers across the nation have developed their groups of trusted MGAs.

This trend is emphasized in IBC’s 2024 Brokers on MGAs survey, which shows the top-performing MGAs in Canada continue to play a significant role in the broking community, with 77 percent of respondents placing up to 25 percent of their businesses with these partners.

A comparison of the 2023 and 2024 results highlights brokers’ consistent reliance on the top MGAs in Canada, with potential for growth at 51 percent and higher levels as MGAs seek to expand their market share in an estimated $4 billion-plus industry.

Brokers’ MGA usage remained stable within the six months surveyed over the past two years, with a minor increase in the 100+ category, suggesting a trend toward a small group of brokers who rely more heavily on MGAs to serve their clients.

A gradual trend toward brokers bidding out insurance placements with a slightly wider pool of MGAs in the three to five range suggests increasing competition, providing MGAs an opportunity to capture market share by enhancing their offerings and value propositions.

To identify top businesses in the wholesale distribution channel, IBC surveyed brokers nationwide, who rated their wholesale partners on a scale of 1 (poor) to 5 (excellent) across 10 performance metrics, including niche risk placement, compensation, pricing, and product range.

MGAs with an average score of 4.0 or higher in at least one category earned a 5-Star designation, while those scoring 4.0 or higher in all categories were recognized as All-Stars. Additionally, brokers ranked their top three MGAs across 20 insurance types, with gold, silver, and bronze medals awarded to the winners in each category.

In selecting their top three insurance products of 2024, brokers recognized the winners for excelling in competitive pricing, ease of doing business, and broad market availability.

These factors were instrumental in determining the Brokers’ Pick awardees:

Burns & Wilcox Canada: Residential

Cansure: Builder’s risk and wrap-up liability

Forward Insurance: Builder’s risk

Brokers elevated this year’s 5-Star MGAs to the winners’ podium for delivering what they value most, according to respondents’ comments:

response time: “A quicker turnaround often leads to binding a new client.”

pricing competitiveness: “90 percent of clients will make a decision based on pricing.”

market availability and specialty products: “Expand product offerings, including more types of risks (e.g., farm insurance).”

commission rates and compensation: “Commissions are used to pay staff salaries in my office.”

claims handling and support: “Online claims examples are very helpful.”

A Clyde & Company report reveals that MGAs’ future shines with opportunity, demonstrating their enduring relevancy, capacity for growth through innovation and technology, and carrier confidence.

As Canada’s specialized MGA sector continues to thrive, employing over 3,500 people at about 80 businesses in 13 provinces and territories, their 20 percent gross written premium in commercial market share is estimated to double in five years.

Two 5-Star MGAs on IBC’s list share the strategies and drivers of their success in this competitive and evolving industry.

The Top MGAs in Canada shine for innovation, flexibility, and service

Overall score: 4 out of 5

Brokers’ praise: Geographical reach

Providing “brilliant” service, speed, and communication to its broker partners and being accessible nationwide, possibly soon in Quebec, are the core of this top MGA’s success.

Agile has maintained profitability over three decades, demonstrating brokers’ confidence and relationships built over time. Its recent acquisition of First Dive in British Columbia, focused on recreational diving, will provide Agile a platform to move into the US market. This further underscores its resolve to sustain its 20 percent year-over-year growth through market expansion and acquisitions.

“What brokers really need and want from any insurer partner in an MGA is that speedy turnaround and communication”

Brett GrahamAgile Underwriting Solutions

President Brett Graham highlights other aspects that differentiate them from competitors:

strong claims management: its in-house team, which many MGAs lack, ensures smooth processes and positive broker and client experiences

expert underwriting: the highly regarded team in the MGA space bridges the gap between the art and science of underwriting, focusing on understanding brokers’ needs and providing tailored products by blending analytical and creative approaches

innovative product offerings: responds to market needs, such as a construction product offering up to $50 million in capacity and niche programs for brewers, distillers, music venues, and hospitality

“We’re always striving for continuous improvement; we listen to our brokers, and if there’s a gap in the marketplace, then we try to work with them to find and fill that gap,” says Graham.

Overall score: 4 out of 5

Brokers’ praise: Reputation

The 5-Star MGA and Brokers’ Pick winner emphasizes three key elements that keep it top of mind in the marketplace: products, expertise, and service.

This combination gives it the competitive edge to remain relevant in a highly competitive market. The company’s ongoing commitment to supporting clients “day in and day out” has been central to its success.

Regional vice president and managing director Tyson Peel illuminates the qualities that give them an edge, particularly in light of brokers rating its core product, residential, as one of the best in Canada:

constantly monitoring the insurance landscape to ensure clients get the coverage and capacity they need

providing flexibility in the market, which clients find helpful

offering top-of-the-line coverage and assisting with more difficult risks when more selective underwriting is required

“Our goals have not changed, which is to provide the products, expertise, and service that our broker partners deserve, and to do that, we need to be proactive of the market changes”

Tyson PeelBurns & Wilcox Canada

“I think that’s why our clients have given us this recognition,” says Peel. “We can help them when they need it most.”

Burns & Wilcox also achieved medals for its cannabis, property (commercial), and real estate specializations, a testament to its adaptability and innovation in a rapidly evolving market.

Peel says, “We are always monitoring the landscape and making tweaks when we feel it is necessary. It’s always a balance, as our goal is to write profitable business for our supporting markets, but also be as flexible as we can to compete.”

Tackling challenges with innovation and creativity

From Peel’s perspective, the transition from the hard market to a softer landscape brought many challenges and changes to Burns & Wilcox.

“We have used this as a learning experience for some of our underwriters and broker partners,” he says. “We overcame this by training and mentoring our staff, working on different skills that must be utilized to enable us to stay successful.”

The 5-Star MGA is also constantly pivoting, inventing, or reinvigorating some of its products to ensure it provides top-tier and relevant offerings to its clients.

Graham explains that staffing and maintaining culture in a remote work environment has been a significant challenge, as it has been within the insurance industry. To address this, Agile has focused on hiring quality staff who fit into its family-like culture, fostering engagement through regular communication and annual team summits.

“We collaborate, we share, and we have some fun, making sure that people feel part of the team,” he says.

Catastrophes such as wildfires, floods, and hailstorms have also caused concern among its market partners.

“We’ve expanded market capacity and invested in technology to monitor and forecast risks in catastrophe-prone areas,” says Graham.

Leveraging tech to stay ahead

For Agile’s Graham, an ongoing focus on leveraging technology to enhance efficiency and effectiveness keeps the company ahead in the marketplace. He prioritizes internal tech solutions to speed up quoting and policy issuance.

Agile has leveraged robotics to automate routine tasks, such as managing client information and automatic renewals. He also highlights the importance of data analytics, especially for MGA work, where gathering and analyzing data from numerous partners is essential for assessing risks and making underwriting decisions.

Graham also highlights the launch of its digital portal for transactional types of business, such as personal lines, with recreational vehicles, manufactured homes, and homeowners coming online in October 2024.

“Strategic partnerships and collaborations on the broker side are a key focus for us,” he says. “We’re working closely with our top-tier brokers, ensuring they’re getting the most out of us and vice versa, for long-term sustainability.”

Burns & Wilcox is in the middle of a massive technology enhancement globally. While it’s still in the early stages, Peel expects this will lead them to several significant changes as they begin implementing its innovative new systems.

“This will give us major advantages, lead to faster quoting times and better information to enable us to react faster and more accurately to changes in the future,” he says.

5-Star MGAs

Ability to place niche or emerging risks

Aurora Underwriting Solutions
Cansure
CFC
CHES Special Risk
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers

Compensation (commission, bonuses, profit-share, etc.)

Aurora Underwriting Solutions
CFC
South Western Insurance Group

Geographical reach

Aurora Underwriting Solutions
Cansure
CFC
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers

Marketing support

Aurora Underwriting Solutions

Overall responsiveness

Aurora Underwriting Solutions
Cansure
CFC
Chutter Underwriting
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers

Pricing

Aurora Underwriting Solutions
CFC
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers

Range of products

Aurora Underwriting Solutions
Cansure
CFC
CHES Special Risk
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers

Reputation

Aurora Underwriting Solutions
Cansure
CFC
CHES Special Risk
Chutter Underwriting
Forward Insurance
Pal Insurance
South Western Insurance Group
Special Risk Insurance Managers
Victor Canada

Technical expertise and product knowledge

Technology/automation

Aurora Underwriting Solutions
CFC
CHES Special Risk
Forward Insurance
Pal Insurance
South Western Insurance Group

Specialization

Accident and health

Forward Insurance

Silver
Victor Canada

Bronze

Cannabis

CanGen

Gold
Cansure

Silver

Commercial auto/transportation/trucking

Special Risk Insurance Managers

Gold
Aurora Underwriting Solutions

Silver
Cansure

Bronze

Construction

Forward Insurance

Gold
Cansure

Silver

Contractors

Forward Insurance

Gold
Cansure

Silver

Cyber

CFC

Gold
Coalition

Silver
Forward Insurance

Bronze

Directors and officers

Victor Canada

Gold
Forward Insurance

Silver

Energy

Aurora Underwriting

Gold
CHES Special Risk

Silver
Cansure

Bronze

Environmental

General liability

Forward Insurance

Gold
Cansure

Silver
Special Risk Insurance Managers

Bronze

High net worth

Special Risk Insurance Managers

Bronze
Cansure

Bronze

Hospitality

Special Risk Insurance Managers

Bronze

Management liability

CFC

Gold
Victor Canada

Silver
Forward Insurance

Bronze

Marine

Forward Insurance

Silver
Coast

Bronze

Non-profit