1 minute read
If Delegated Authority Is The Answer, What is The Question?
By Paul Rich – MOTOSI Consulting
Delegated Authority (DA) business makes up nearly 40% of all premium inflows to Lloyd’s and is transacted by a network of over 4,000 registered coverholders and more than 350 service companies and thousands of brokers worldwide. It has also been estimated (by the International Underwriting Association) that the ‘Company Market’ writes close to US$6BN of DA business and has been steadily growing in recent years.
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This would suggest that writing DA business is indeed the answer to many a company’s question around where growth exists in an ever changing and increasingly challenging global insurance market; whether that is to front up to the challenges presented in a post – pandemic world or to deliver new and innovative products in the area of evolving and new covers provided for cyber and parametric insurance risks. Business delivered by this capacity distribution model is increasingly popular and strategic in the thinking of London Market companies as they look to create the value required in an efficient and strategic DA proposition. The simple fact is though that at present it is expensive, inefficient and a somewhat aged and challenging business model to
See Delegated Authority Page 40
About the author: Paul Rich has an in-depth understanding of global (re)insurance markets, particularly the Lloyd’s and London Market. MOTOSI Consulting works with clients including Brokers, Managing Agents, and Coverholders in the Company and Lloyd’s markets to assist in the delivery of operational best practice and outcome excellence, always striving to improve business processes and delivering efficiencies utilising a blend of forward, pragmatic and focused thinking and where appropriate ‘best in breed’ tech, aiming to drive costs down and margins up. With extensive strategic engagement experience and being commercially adept at managing multitiered, complex business relationships and operating models; delivery is focused, strategic and measurable.
