New market insights are shaping FSRA’s priorities in P&C supervision

FSRA conducted a review of property and casualty (P&C) insurers’ outsourcing relationships with managing general agents (MGAs) because of their significant role in the Ontario P&C market and the potential for consumer harm.

The review found that MGAs provide specialized insurance coverage, but their market share is limited in Ontario.

FSRA expects insurers to ensure the MGAs they outsource functions to treat consumers fairly. Both insurers and MGAs must have adequate controls to meet regulatory requirements.

“Our review found that the P&C MGA market share in Ontario is limited. However, MGAs provide consumers with specialized expertise and insurance coverage, fulfilling unique needs,” said Beata Morris, Director, P&C Insurance Market Conduct at FSRA. “Given the significant role of MGAs in the Ontario market, FSRA expects insurers to maintain strong controls and oversight to ensure fair treatment of consumers when outsourcing business functions.”

Key observations

• 58 insurers of the 218 reviewed outsourced functions to MGAs in 2023
• 6% of Ontario’s total P&C direct written premium (DWP) was generated through MGAs in 2023 
• 9 insurers wrote more than 50% of their DWP with MGAs 

The observations of this report will be incorporated into FSRA’s insurer oversight work to identify future priorities. FSRA will focus its efforts on areas of greatest potential for consumer harm.

Learn more

• Report: The Role of MGAs in Ontario’s P&C Insurance Market 
• Supervision Plan: P&C Insurer–MGA Outsourcing Relationships

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.