Delegated Authorities Update
As always, developments in the delegated authority space continue, and we’re working closely with both Lloyd’s and the market to provide a more effective framework and tools to support the distribution channel. In doing so, we’re focusing on three different areas at all times – to improve the DA experience for third parties and to drive down duplication and costs for all stakeholders, balanced against a robust oversight framework.
New Binder Wordings
We’ve started to collate feedback and to look at a review of our suite of binder wordings. While we’ve been gathering feedback on the existing binder wordings to ensure that they are fit for purpose, we’re also looking to modernise the wordings themselves.
The existing wordings are well understood in the market and are easy for underwriters and brokers to understand. However, as we move towards digital contracts, we need to ensure that the structure of the contract will work for computers to build and analyse the information in those contracts. This should enable them to be dynamically constructed based on the scope of the contract, and for that data to be reused across the various systems used downstream.
We’re undertaking two exercises to gather intelligence from the market on DA issues, and will be looking to engage in this way in more detail going forward. This could be either at a general level, looking for feedback on overarching themes, or on detailed technical issues.
Click here to download Viewpoint.