The MGA’s are owner’s of the Insurance companies and charge fees from the Insurance companies to be the manager of them. This system is wacky at best, but is the only system in Florida that works for now. The problem has been that they are charging a  lot and have been trying to take out more money than normal as the ower/investors. This is what has caused the Insurance companies to have smaller reserves in recent times. The Office of insurance regulation has raised the reserve requirements so things should start to improve over time. Higher  premiums is one of the answer’s, but that is too late for companies like Northern capital and Magnolia as well.Please read the full article below as we are about to enter hurricane season;

http://www.insurancejournal.com/news/southeast/2010/05/25/110162.htm

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