The Lloyd’s Market Association (LMA) has launched a Delegated Authority Committee (DAC) to inform and guide the evolution of this important aspect of Lloyd’s underwriting, distribution and claims.
Delegated authority business currently accounts for roughly 40% of the market’s annual gross written premium, but to date has not had a dedicated, strategic market committee to give a focus to the future business model of delegated business, said the LMA in a statement.
The group’s objective is to establish a customer-centric vision and future business model for delegated authorities for all disciplines, from customers and clients to Lloyd’s carriers. The committee aims to establish what are the distribution chain and market needs in order to be successful and ensure “that Lloyd’s is the market of choice.”
The committee will begin by:
- engaging with customers, clients (coverholders and brokers) and the market,
- establishing a business model for the future that leverages the ongoing initiatives and tackles distribution challenges and acquisition costs to the benefit of managing agents, coverholders, brokers and customers,
- influencing the increased regulatory attention to distribution, oversight, costs, performance and service quality.
“The market must consider its broad DA strategy carefully, through the lens of our coverholders, brokers and customers,” said Nigel Roberts (head of Distribution at Aegis), who has been appointed chair of the DAC.
“This includes developing the DA business model that can deliver front-end change, enabling us to be flexible in how we source and service our clients’ and customers’ needs, whilst delivering bespoke and innovative products and solutions for distributing business itself. Furthermore, this should be achieved from a lower cost base,” he added.
Lee Elliston (claims director at the LMA) said: “Delegated authority business and the related client and customer base is critical to the Lloyd’s market. Establishing key changes to our business model, in direct collaboration with our value chain, will ensure that benefits can be delivered to all parties, reducing acquisition and expense costs, streamlining the sourcing and servicing of business to remove friction, and supporting the growth and innovation of our market and our clients.”
The committee comprises a multi-disciplined group of senior specialists from the Lloyd’s managing agency community, ensuring that all disciplines of the insurance product are connected and united behind the evolution required within DA. It reports directly to the LMA Board and has established feedback loops to Lloyd’s and the London International Insurance Brokers Association (LIIBA).
Source: Lloyd’s Market Association
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