Who owns the value chain now?

This is not just a distribution story anymore. In the world of managing general agents (MGAs), something more fundamental is underway, a financial expert specializing in insurance brokerages tells Canadian Underwriter.

“Hybrid models are not just a distribution shift, they are reshaping how value is created and delivered across underwriting, servicing, and claims,” says Andrew Mathias, managing director and partner in KPMG’s corporate finance practice specializing in insurance brokerages.

Nowhere is that more visible than in claims. Traditionally the insurer’s domain, claims service delivery is becoming more distributed.

“Roles are evolving across the ecosystem, particularly in areas like claims, where service delivery is becoming more distributed, with insurers, MGAs, and partners each playing a more integrated role in the client experience,” Mathias said.

As MGAs gain binding authority and deepen capacity relationships, they are increasingly involved in first-response, triage, and client communication — functions that once sat squarely with the insurer. For clients, the experience may be more seamless. For the industry, it requires clearer accountability across a more distributed delivery chain.

The structural shift driving all of this is consolidation — and the economics behind it. “The rise of hybrid MGA models reflects a broader shift in insurance distribution, where brokerages are looking to capture more value across the chain — optimizing premium flow while improving margins,” Mathias said.

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At the front-office level, the appeal is direct. “Access to dedicated programs and the ability to bind policies quickly, reducing reliance on external markets, and improving speed to client,” he noted. For consolidators managing large, diversified books of business, placing risk internally — rather than routing it through third-party MGAs — retains margin and accelerates service.

That efficiency comes at a cost for the broader MGA ecosystem. “Third-party MGAs will see longer-term uncertainty as consolidators shift third-party MGA business to their integrated models,” Mathias said. As more premium flow moves in-house, standalone MGAs that have historically relied on volume from large retail brokerages may find that pipeline contracting.

The MGAs best positioned to weather that pressure are those with something proprietary — a specialty program, deep technical underwriting capability, or a niche market relationship that a consolidator cannot easily replicate internally. And paradoxically, those same qualities are making them targets. “That pressure is elevating the strategic value of MGAs,” Mathias said. “Their underwriting expertise, niche programs, and economics make them highly attractive acquisition targets for larger consolidators seeking accretive growth.”

Canada’s regulatory environment is tracking the shift, according to KPMG’s Insurance Trends Outlook 2026. The revised MGA framework places sharper expectations on training, suitability, oversight and accountability, as MGAs increasingly shape customer experiences. As hybrid models blur the lines between distribution, underwriting, and servicing, those accountability expectations will only intensify.

For brokers and insurers, the question is no longer whether the model is changing. It is how quickly to adapt — and where in the value chain each player can best compete.

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Sonia Sache

Sonia is an award-winning multimedia journalist, producer TV personality and content strategist with more than a decade of experience across television, radio, digital media, and communications.