At a time when underwriting margins are under the microscope, distribution models are diversifying, and technology is moving at a breakneck pace, the MGA space is undergoing a quiet revolution. And at the heart of it lies a new breed of players: insurtech MGAs. No longer just tech-layered vendors, these firms are repositioning themselves as full-stack, fully capable underwriting entities with data-rich models, nimble platforms, and customer ownership at the core.

Jascha Prosiegel, who oversees Munich Re Specialty’s Insurtech Programs, has seen this evolution firsthand. As one of the industry’s most involved capacity partners to digital MGAs, he’s developed a keen eye for what drives scalability, which red flags are not to be missed, and how to shape sustainable partnerships with tech-forward firms. Speaking with The Insurer TV’s Kamaron Leach, Prosiegel outlines what’s truly required to win in today’s program space.

The first wave of insurtech MGAs was really about digitalization and process improvement — adding online services when most insurers were still relying on manual workflows. But now, the tailwinds are coming from more sophisticated technologies: artificial intelligence (AI), large language models, and other frontier innovations.

Many of the companies building these tools are now asking themselves, "How do we best monetize this tech?" The answer is often to become an MGA. That model gives them full control, not just over the technology but also the customer relationship, the insurance product, and the opportunity to bundle services like risk reduction alongside coverage.

There are two key tracks: hyper-focused MGAs that leverage proprietary tech in niche markets and broader plays where startups use tech to scale into wide-market opportunities. Either way, they can outperform traditional carriers in risk selection and use that edge to build something more durable.

Truly transformative is a big term, and I’d argue that most carriers today aren’t necessarily looking for transformational MGAs. They’re looking for sustainable ones.

That’s not to say innovation is absent. What we’re seeing now is a healthy shift. More insurtech MGAs are hiring seasoned insurance experts into leadership roles. That focus on building a healthy, profitable book? That’s a good thing.

Some digital MGAs are deploying AI across every consumer-facing process. That includes chatbots, decision trees, and automated workflows — all of which could change how people interact with insurance at the core.

The biggest difference when we evaluate an insurtech MGA isn’t just the product, it’s the commitment.

We want to know: Is this company truly focused on building a scalable insurance book? Or is this just a tech experiment they might pivot away from next year?

We assess businesses by asking key questions about fundamentals:

In truth, the market already has the puzzle pieces. The challenge now is applying those tools in ways that actually improve risk selection and doing so in a way that’s sustainable for the customer, the carrier, and the regulator.

There’s opportunity in smarter risk differentiation, with better data leading to fairer pricing or risk avoidance altogether. But we’re still in the early innings of deploying that at scale, especially in a market as complex as the United States.

This is exactly where partnerships matter. Regulatory alignment isn’t typically something a startup founder with a tech background is focused on. But that’s where someone like Munich Re Specialty, or an experienced paper provider, can come in.

We help companies think through the regulatory framework early. And in doing so, we create a structure that regulators, consumers, and carriers can all trust.

It comes down to mutual respect and shared ambition. We want to be involved —  collaborating on product development, risk appetite, and regulation — but that only works if the MGA values that input.

We look for MGA partners who are strong, decisive, and have a clear strategy and who also see the value in having a company in their corner that’s been around for more than a century. If we’re aligned on profitable growth and long-term vision, we can build something great together.

There are a few, but two stand out. First, we sometimes see brilliant ideas but no testing of actual demand. A novel insurance product doesn’t mean much if no one wants to buy it. Secondly, we love technology, but we’ve seen MGAs throw machine learning or LLMs at problems that don’t need it. You don’t need to build a rocket to solve a spreadsheet task.

This article was produced by Program Manager in collaboration with Munich Re Specialty.