The MGA Model In India: Statutory Framework And Regulatory Implications

A. Introduction

With the statutory recognition of Managing General Agents ("MGAs") under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act 2025 ("2025 Amendment"), there has been renewed discussion in India on whether delegated authority arrangements, particularly in relation to underwriting and claims handling, can be implemented within the existing framework governing Insurers and insurance intermediaries. This discussion has been reflected in recent press reports and market commentary for some time now, and remains a topic of debate in the industry.

A Managing General Agent ("MGA") is an insurance intermediary that operates under a delegated authority arrangement with an Insurer or Reinsurer (referred to as the "capacity provider"). Under such arrangements, the capacity appoints the MGA to perform certain underwriting (and, where agreed, claims handling) functions on its behalf, subject to agreed limits. The MGA may therefore bind the capacity