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📄 '''Paper''' is industry shorthand used in [[Definition:Insurance | insurance]] and [[Definition:Reinsurance | reinsurance]] markets to refer to the legal entity, [[Definition:Insurance license | license]], or [[Definition:Insurance carrier | carrier]] platform on which policies are issued. When a [[Definition:Managing general agent (MGA) | managing general agent]] says it is "looking for paper," it means it needs an admitted or surplus-lines carrier willing to lend its licensed entity and [[Definition:Financial strength rating | financial strength rating]] so that the MGA can write and bind business. The term underscores a practical reality: regulatory requirements mean that only licensed carriers can issue [[Definition:Insurance policy | policies]], so the carrier's charter and capitalization — its "paper" — is the essential legal scaffolding behind every program.

🔗 In a typical arrangement, the carrier providing paper enters into a [[Definition:Binding authority agreement | binding authority agreement]] or [[Definition:Program administrator | program]] agreement with the MGA or [[Definition:Coverholder | coverholder]], specifying which [[Definition:Line of business | lines of business]], territories, and [[Definition:Policy limit | limits]] the intermediary can write. The carrier's [[Definition:Surplus | surplus]], regulatory standing, and [[Definition:Admitted insurer | admitted]] or [[Definition:Non-admitted insurer | non-admitted]] status determine the types of risks eligible for the program. [[Definition:Fronting | Fronting]] arrangements represent a specialized version of this concept, where the carrier provides its paper and rating primarily to facilitate access to the market, while [[Definition:Reinsurance | ceding]] the vast majority of the risk to a [[Definition:Reinsurer | reinsurer]] or [[Definition:Captive insurance company | captive]] behind the program. The fronting carrier earns a [[Definition:Fronting fee | fronting fee]] for the use of its paper and retains regulatory responsibility for the policies issued.

🎯 Availability and quality of paper can make or break an MGA's growth trajectory. A strong carrier partner with an "A" or better [[Definition:AM Best rating | AM Best rating]] opens doors to [[Definition:Insurance broker | brokers]] and clients who mandate minimum rating thresholds, while weaker paper narrows the addressable market. In the current environment, demand for quality paper among [[Definition:Insurtech | insurtech]] startups and program managers has intensified, giving well-capitalized carriers significant leverage in negotiating fee structures, [[Definition:Underwriting guidelines | underwriting guidelines]], and data-sharing requirements. For the carrier, deploying its paper selectively across well-managed programs is a capital-light strategy for growing [[Definition:Gross written premium (GWP) | gross written premium]] without building an in-house distribution infrastructure.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Fronting]]
* [[Definition:Managing general agent (MGA)]]
* [[Definition:Binding authority agreement]]
* [[Definition:Admitted insurer]]
* [[Definition:Financial strength rating]]
* [[Definition:Program business]]
{{Div col end}}

Definition:Paper - Revision history

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