Representatives of over 75 percent of the UK’s Managing General Agents’ Association (MGAA) member organizations gathered yesterday to hear Peter Montanaro, Head of Delegated Authorities at Lloyd’s, set out the market’s plans for improving the oversight and management of delegated underwriting.
Speaking to a packed audience at The Old Library at Lloyd’s, Montanaro spoke at length about the role of delegated authority business in the changing regulatory landscape and outlined plans to improve distribution. The new Lloyd’s market initiatives outlined included the Consumer Product Binding Authority project, which combines coverholder auditing, the introduction of a new level of underwriting authority, enhanced due diligence and a fifth minimum standard for delegated underwriting focused on conduct risk.
Peter said: “MGAs are an important part of the Lloyd’s distribution chain. The market must therefore continue to ensure these entrepreneurial businesses are able to operate effectively while ensuring they manage their relationships to appropriate standards and respond appropriately to the increased regulatory focus on conduct risk.
“The level of interest and engagement from the MGAA members today demonstrates this is a mutual objective and the team at Lloyd’s intends to work closely with the Association to ensure the goals of all parties are delivered.”
Peter Staddon, Managing Director of the MGAA, added: “Our members understand the importance of appropriate regulation. The Association is working with all Regulators to ensure that the distinctive position of the MGA in the distribution chain is recognized, understood and reflected in their thinking.
“We welcome the Lloyd’s market’s proposals for delegated authority business. They are in line with our focus on professionalism and will help to ensure the benefits MGAs bring to the market are clearly identified.”
Source: Managing General Agents’ Association (MGAA)
Topics Legislation Excess Surplus Insurance Wholesale Lloyd's
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