The Canadian Association of Managing General Agents (CAMGA), which represents property and casualty insurance MGAs, has unveiled its voluntary standards that provide a governance framework for MGAs in the property and casualty insurance sector.

According to Steve Masnyk, Executive Director of the CAMGA, voluntary adoption of these governance rules will help reassure brokerage firms and insurers that MGAs are adopting and following best practices.

“The regulatory void that has often been discussed within the industry will now be replaced with operating standards that provide transparency as to what rules the MGA marketplace follows Canada. This is a step that will provide confidence and assurances for every segment of the insurance industry trading with MGAs," he says.

“These standards are in addition to the strict oversight brought by our insurer partners in the underwriting services we provide,” adds MaryKate Townsend, association board chair.

CAMGA’s goal in publishing these standards is to reassure the public that MGAs are managing premiums responsibly, that they meet and exceed professional indemnity coverages, and that they are providing explicit transparency regarding the insurers that support their underwriting activities.

The publication of this code is among the intentions the CAMGA announced earlier this year.


The code to which CAMGA’s MGA members voluntarily adhere includes the following commitments that apply in all jurisdictions where they operate:

- Agree to be licensed as an insurance intermediary where strictly mandated;

- Hold errors and omissions insurance that meets the minimum standards where the MGA practices;

- Maintain a fidelity bond (to prevent misappropriation of fund) where warranted;

- Maintain an adequate trust account for the deposit of insurance premiums received from all sources;

- Ensure that the MGA obtains from the broker or agent a copy of the Consent and Acknowledgement of Risk form signed by the consumer that is required for any insurance purchased from a non-licensed carrier before binding the risk;

- Endeavour to notify the broker of non-renewals of a contract at least 45 days prior to the renewal date;

- Explicitly inform the broker at the quoting stage of all quotes obtained from insurers;

- Notify the CAMGA within 30 days of the finding of the breach of any of the commitments above.