A pattern that comes up regularly with international insurance platforms: a UK-based or European MGA has built real underwriting capability, has carrier relationships, and wants to access US surplus lines distribution — but does not want to hire US employees, relocate directors, or establish a full US office to do it.
The question is whether this is structurally possible, and if so, what the US entity actually needs to look like.
The short answer: yes, it is possible — but the structure has to be right, and there are specific activities the overseas team cannot perform from abroad without triggering US licensing requirements.
What US Surplus Lines Distribution Actually Requires
Surplus lines insurance is non-admitted coverage — placed with carriers that are not licensed in the placing state but are approved as eligible surplus lines insurers. In the US, surplus lines business is placed by licensed surplus lines brokers, who must hold active surplus lines broker endorsements in the states where their insureds are located.
A non-US MGA cannot place US surplus lines business directly. It has no standing in the US state regulatory system, regardless of its home country authorizations. A UK FCA authorization, a Lloyd's coverholder approval, or any other non-US credential does not confer the right to transact US insurance business.
What a non-US MGA can do is operate through a US licensed entity — one that holds the surplus lines licenses and serves as the distribution interface with US brokers and insureds.
The Two Roles That Have to Be Separated
In a delegated authority MGA structure, there are two distinct functions that the US regulatory framework treats very differently:
Underwriting and binding authority. The MGA underwrites risks, sets terms, and binds coverage under authority delegated by a carrier. Whether this function can be performed by overseas personnel without US licenses depends on a precise question: is the overseas team performing the substantive underwriting analysis (which generally does not require a US license), or is it soliciting, negotiating, or effectuating insurance contracts with US insureds (which does)?
Distribution and placement. The act of marketing to US insureds, negotiating terms with US retail brokers, and binding coverage for US-located risks requires a US producer license in the states where those activities occur. This function cannot be performed from overseas without a US license — or without routing the placement through a licensed US entity.
The practical line: if your overseas team is making underwriting decisions and a US licensed entity is handling the broker-facing distribution and placement, the structure can work. If your overseas team is directly negotiating with US retail brokers or binding coverage for US insureds, that team needs US licenses.
What the US Entity Needs to Look Like
The US entity in this structure is typically a domestic LLC — often formed in Delaware but licensed in a more favorable home state — that holds business entity producer licenses across the states where it will operate, along with surplus lines broker endorsements in those states.
The entity does not need to be owned by US citizens or residents. Foreign nationals can own and control a US LLC. But the entity needs several things that a purely overseas-operated structure cannot provide on its own:
- A US registered agent — a US-based individual or service that accepts legal documents on the entity's behalf
- An EIN from the IRS — the federal tax identification number required for NIPR registration and state license applications
- A Designated Responsible Licensed Producer (DRLP) — a specifically licensed US individual designated as responsible for the entity's compliance with state insurance laws
- Active business entity producer licenses in the states where the entity will place business, with surplus lines endorsements where applicable
Of these, the DRLP requirement is the one that most often stops non-US MGAs in their tracks.
The DRLP Requirement in an MGA Structure
Every US business entity producer license requires a Designated Responsible Licensed Producer — a specific named individual with active US producer licenses who is on file with the state DOI as responsible for the entity's regulatory compliance. You cannot obtain a US entity license without one, and you cannot designate one without identifying them before the application is filed.
For a non-US MGA with no US employees, this creates an immediate structural question: who is the DRLP?
The solution most non-US platforms use is an outsourced DRLP arrangement. Rather than hiring a US employee — which creates employment law complexity and makes the entity dependent on a single individual — the entity contracts with a licensed US-based individual or firm to serve as the designated producer on an ongoing basis.
The DRLP is a compliance designation, not an ownership or management role. The overseas founders retain full control of the entity. The DRLP's function is to be the licensed individual on file with the DOI — and to maintain the licenses, manage renewals, and provide the oversight the state requires.
The DRLP is not a managing partner, a US representative with signing authority, or a legal agent of the entity. The role is a regulatory compliance designation. Your overseas team retains ownership and operational control. The DRLP provides the US licensed individual the state requires in order for your entity to hold a producer license.
What Overseas Personnel Can and Cannot Do
This is the question non-US MGAs ask most often, and the answer is genuinely nuanced. The US licensing requirement is triggered by specific acts — soliciting, negotiating, or effectuating insurance — not simply by the employment location of the person performing them.
Generally permissible from overseas without a US license:
- Underwriting analysis — reviewing submissions, modeling risk, setting terms and pricing
- Internal decision-making about whether to bind a risk
- Operating the technology platform or system of record that supports placement
- Communication with the US entity's licensed personnel about underwriting decisions
Generally requires a US license or routing through a licensed US entity:
- Soliciting US-based retail brokers to place business with the MGA
- Negotiating coverage terms directly with US retail brokers or insureds
- Binding coverage for US-located risks in a client-facing capacity
- Issuing certificates of insurance or binders to US insureds
The distinction is between the internal underwriting function — which stays in London, Dublin, or wherever your team is based — and the external distribution function, which goes through your US licensed entity. The cleaner that separation is maintained in practice, the more defensible the structure is from a regulatory standpoint.
Surplus Lines Endorsements and the Home State Question
Once your US entity has its base producer license, surplus lines business requires an additional endorsement — a surplus lines broker license — in each state where your insureds are located. Under the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), the relevant state is the insured's home state: their principal place of business or residence.
For a non-US MGA targeting US commercial business across multiple states, this typically means pursuing surplus lines endorsements in all or most states where you expect to place business. That is a meaningful licensing undertaking — but it is manageable with the right structure in place.
Home state selection for your US entity also matters here. Certain states — Texas, Florida, and Pennsylvania among them — process surplus lines endorsements faster and with less friction than others. California and New York are slower and more document-intensive. If your team is overseas and cannot easily respond to DOI inquiries, processing speed is a real variable in home state selection.
The MGA Agreement and Carrier Approval
The licensing structure is one piece. The other piece is the MGA agreement with your carrier — the document that grants you binding authority for US risks under the carrier's surplus lines paper.
US surplus lines carriers that grant binding authority to MGAs typically require that the MGA be licensed in the states where it will bind business. Some carriers also require that the MGA's DRLP be individually appointed with the carrier. Before finalizing your licensing structure, verify what your carrier partner requires — their MGA agreement template will usually specify it, and their compliance team can clarify their specific requirements.
If your carrier requires individual DRLP appointments, that is a known step — part of the appointment process rather than an additional licensing undertaking. But it needs to be in the plan before you go live.
Common Mistakes Non-US MGAs Make
Assuming the licensing is the carrier's problem. Some non-US platforms assume that because they are operating under a US carrier's paper, the carrier's licenses cover the placement activity. They do not. Your MGA entity needs its own licenses for the distribution function.
Treating the DRLP as an afterthought. You cannot file your US entity producer license application without a DRLP identified. This is not something to sort out after formation — it needs to be in place before you file.
Having overseas personnel directly contact US retail brokers. If your overseas underwriters are negotiating terms with US retail brokers directly, those activities may constitute unlicensed insurance transactions in the states where those brokers operate. The distribution-facing work has to flow through the US licensed entity.
Forming in Delaware and defaulting to Delaware for insurance licensing. Delaware is not always the fastest or most straightforward home state for insurance licensing. For non-US entities without US-based personnel who can easily respond to DOI inquiries, choosing a state with faster and more predictable processing is worth the consideration.
Frequently Asked Questions
Can a non-US MGA own and control a US licensed insurance entity?
Yes. Foreign nationals can own and control a US LLC without being US citizens or residents. The US entity needs a registered agent, an EIN, a DRLP, and valid producer licenses — but none of those requirements mandate US ownership or US-resident founders.
Does our UK coverholder approval or FCA authorization count for US licensing?
No. UK and EU regulatory authorizations have no standing in the US state insurance regulatory system. Your US entity needs US licenses regardless of what licenses your non-US operations hold.
Can our overseas underwriting team bind US risks directly?
Binding coverage for US risks in a client-facing capacity generally requires a US license. The cleaner structure is for your overseas team to make the underwriting decision and for the US licensed entity to execute the bind. Your MGA agreement with your carrier should reflect this structure.
What is an outsourced DRLP and is it a standard solution?
An outsourced DRLP is a licensed US individual or firm that serves as the Designated Responsible Licensed Producer for your US entity on a contractual basis. It is the standard solution for non-US MGAs and insurtechs entering the US market without US employees. DRL Advisory provides this service across all 50 states.
How many states do we need surplus lines endorsements in?
You need surplus lines endorsements in the states where your insureds are located — the insured's home state under the NRRA. If you are writing commercial business across the US, that typically means pursuing endorsements in most or all states. This is manageable as a phased process: start with the states where you have the most near-term business and expand from there.
This article is for informational purposes only and does not constitute legal advice. Insurance licensing requirements vary by state and are subject to change. For guidance specific to your situation, consult qualified US insurance counsel.