At the recent Target Markets Annual Summit in Scottsdale, Arizona, a gathering of 2,000 MGAs, program administrators and carrier executives, Insurance Journal sat down with Abbie Taylor, executive vice president and chief operating officer of Jacksonville, Florida-based Fortegra. Here is an edited transcript of the conversation.
Insurance Journal: What can you tell us about the MGA space in terms of its size and the factors driving its growth?
Abbie Taylor: It’s always great to be back at Target Markets and get a sense of the MGA market more broadly. The market today is over $110 billion in the U.S. — it’s basically doubled in the last five years — and MGA growth is outpacing that of the broader P&C market. There are more than 1,100 MGAs and program administrators operating at this point, and we’re seeing strong growth of MGAs in the UK and Europe as well.
One thing I particularly enjoy about coming to Target Markets is meeting with agents and hearing the deep expertise they bring to their niche markets. Over the years, we’ve seen talented professionals leave large carriers to hang out their own shingle, and there are several reasons for that. They have the expertise, capacity is available to support them, and technology has made it easier than ever to build their own agencies. MGAs today can move with agility and make decisions faster than traditional insurers. Part of what makes these conversations so valuable is understanding the businesses they’re trying to build and how we can support them.
IJ: On the flipside, what challenges are MGAs facing?
AT: MGAs constantly need to adapt to the evolving insurance landscape. Some of the emerging challenges include changing rate dynamics depending on the segment; ongoing technology investments, which are essential to remain competitive; increasing regulatory complexity; and high submission volumes coupled with declining conversion rates. They’re also working to understand how to effectively leverage AI and automation in their businesses.
IJ: What can you tell us about the state of the E&S market?
AT: The excess and surplus lines market continues to expand as the need for specialized, complex risk solutions grows. MGAs are seizing this opportunity by designing tailored products for unique and hard-to-place risks, with specialty insurers like Fortegra acting as essential partners by providing the capacity needed for this expansion.
The underwriting opportunities and regulatory framework within the E&S market make it highly attractive for innovation. When we look at the insurance market today, there’s increasing risk complexity. Consider the cyber landscape 15 years ago — it’s dramatically different from today. Environmental risk is another example. These coverages will continue to grow because the E&S market allows for the underwriting agility and speed needed to address emerging and complex risks. It’s where we see tremendous innovation from MGAs. As an insurer focused on niche underwriting, Fortegra is uniquely positioned to support MGAs in scaling efficiently and profitably in this evolving landscape. We succeed when our agents succeed.
IJ: Fortegra recently announced a couple of UK developments. What’s the rationale behind them?
AT: As Fortegra solidifies its position as a leading global specialty insurer, this represents an important next step in our long-term expansion strategy. Lloyd’s is the epicenter of the global specialty insurance market, and our presence in the underwriting room greatly enhances our ability to deliver reliable insurance solutions and seamless market access to our partners.
This builds upon our established insurance companies in the UK and Belgium. We’ve also recently been admitted to the NAIC Quarterly Listing of Alien Insurers, which enables UK MGAs to access U.S. surplus lines business. Combined with our strong presence in the London market, it’s a powerful combination as we can build those natural relationships with brokers and agents on the ground while providing the capacity to tackle complex risks on both sides of the Atlantic.
IJ: It was announced that there is an agreement for Fortegra to be acquired by DB Insurance, a Korean company. What’s the strategic value of this transaction?
AT: This agreement represents a significant milestone in Fortegra’s evolution as the underwriter of choice for reliable agents and distribution partners. The partnership will combine Fortegra’s proven expertise in specialty insurance underwriting with DB’s substantial capital base and global expansion strategy.
DB seeks to establish a broader presence in the U.S. specialty insurance market and enter European specialty markets as part of its goal to become a leading insurance group by 2033. Fortegra’s established market presence, proven track record of underwriting consistency, and long-standing distribution relationships make it an ideal partner for achieving these strategic objectives.
IJ: This is a competitive space. How does Fortegra stand out?
AT: At Fortegra, we lead through partnership and collaborative value creation. We provide more than just capacity — we bring deep industry expertise, data science insights, effective claims management, and a forward-thinking approach to risk.
Our strategy is built on five core disciplines: strong relationships with quality distributors, consistent underwriting excellence, disciplined claims management, focused balance sheet management, and leveraging AI and data science for better decision-making.
Let me highlight a few differentiators. The U.S. MGA market hit $114.1 billion in 2024, growing at double-digit rates for four consecutive years. But growth without discipline is just volatility. Our data science is systematic insights applied to underwriting excellence — we continuously analyze millions of data points to identify emerging trends, pricing opportunities and risk concentrations before they impact results.
On claims, our philosophy is ‘keeping small claims small’ through proactive containment. We proactively connect claims, underwriting and actuarial data in a continuous feedback loop. For complex losses, our Tiger Team handles specialized claims, and we maintain direct oversight through our internal claims team supplemented by select TPAs.
We can write on an admitted or surplus lines basis in all 50 states, support both ISO-based and proprietary forms, and offer reinsurance solutions. Our Compliance Team collaborates across functions throughout the program lifecycle to improve underwriting results.
We’re true program partners, and we look for similar focus areas from our MGAs. When evaluating a partner, we’re assessing their underwriting expertise and how they value technology. Will they collaborate with us on claims trends? These factors are critical to our partnerships, and we also view them as differentiators for Fortegra in how we add value to our partners.
IJ: What are you doing to develop new talent for your company?
AT: Recruiting and developing talent for the future is a major focus for Fortegra. As we near $3.5 billion in top line revenue, we recognize that we need to continue to build the infrastructure for the future. We have a tremendous base of talent with deep insurance expertise, but the broader industry faces a significant challenge. The Bureau of Labor Statistics projects that by 2039, 50% of insurance talent will retire. We need to recruit new talent and develop our middle-management ranks, and that’s something we’ve prioritized at Fortegra.
We have a leadership development program — a two-year rotational program for emerging professionals that provides diverse business experiences and focused training to launch their careers. We recruit from a few specific target schools, several with business or insurance specializations, and each year we hire a cohort of leadership development candidates. They rotate through areas like underwriting, compliance, marketing, HR or finance. Our goal is for them to gain a comprehensive understanding of how insurance works and build their business acumen. Today, we have program alumni placed across all these functions, and we’re about to launch the program in our London office as well.
But it’s not just about new talent — it’s also about investing in our existing talent beyond traditional coaching and mentorship. We’re now rolling out the Fortegra Institute, our platform for continuous learning. This initiative develops our future leaders with expertise in underwriting, actuarial science and other insurance specialties. Several of our senior leaders will teach these courses, and it will also include a track for essential leadership skills.
The insurance industry is at a crossroads. A generation of experienced professionals is nearing retirement, while a new wave of young professionals seeks purpose- and values-driven careers, and technology is fundamentally reshaping how we work. Recognizing this imperative, Fortegra’s forward-thinking, entrepreneurial approach serves as a powerful differentiator in attracting the next generation of talent. By fostering a culture that encourages innovation and creative problem-solving, the company appeals to professionals eager to build careers in a dynamic, growth-oriented environment. This focus on initiative and impact positions Fortegra as a compelling destination for professionals motivated to influence the future of specialty insurance.
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