MGAs emerge as the dominant buyers of core systems

ReSource Pro’s analysis of 2025 deals, featured in our 2025 Core Systems Purchasing Trends report, shows 135 core system purchases in the North American P&C space, the highest volume recorded in the past decade.

Over the more than 12 years of tracking core system purchasing trends, we have seen market activity ebb and flow. Yet, even during slower periods, carriers and MGAs have maintained a clear imperative to modernize their policy, billing, and claims technology stacks.

ReSource Pro’s analysis reveals a notable shift in who is driving that activity, with MGAs surpassing Tier 4 carriers to become the single largest buying group of core systems, accounting for 33% of all deals in 2025. It is worth noting that MGA-specific systems marketed and sold exclusively to MGAs are examined in a separate report. When also accounting for those transactions, the MGA market purchased 72 core systems last year (45 carrier systems and 27 MGA solutions).

MGAs’ buying patterns were nearly evenly split between full suite deals (16) and policy admin-only purchases (15). Perhaps the most telling year-over-year difference was in the surge of billing system transactions, rising from zero deals in 2024 to seven in 2025. While many MGAs use horizontal billing solutions, the growth in insurance-specific billing system deals reflects the current trend of many MGAs expanding their capabilities beyond simple policy servicing to take on greater responsibility across the insurance value chain.

Another significant trend in core purchasing activity is the surge in on-prem to cloud conversions/migrations, which accounted for 21% of all deals in 2025. Although much of this activity is among carriers, especially in the larger tier groups, cloud migrations are expected to continue over the next few years, with many MGAs upgrading their systems during that time.

What’s next for MGAs and core systems

The MGA market will continue to be a primary target for core system vendors. However, there is no one-size-fits-all approach for success in the MGA market. MGAs vary widely in size, complexity, budget, and operational needs. At the same time, some MGAs prefer out-of-the-box solutions while others favor more bespoke, customizable systems. While this all presents some challenges, it also creates an environment for core systems providers to tap into a growing market rife with opportunity. Vendors that successfully adapt to emerging trends, particularly in AI integration and alternative delivery models, will be well positioned to establish a competitive edge as the MGA market matures.