07 July 2020
LMA launches Delegated Authority Committee
The Lloyd’s Market Association (LMA) has convened a new Delegated Authority Committee (DAC) to inform and guide the evolution of this important aspect of Lloyd’s underwriting, distribution, and claims. DA 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 focus to the future business model of delegated business - a model to support growth and efficiently and effectively service our SME clients and customers globally.
The group’s objective is to establish a customer-centric vision and future business model for DA for all disciplines, from our customers and clients - to Lloyd's carriers. Establishing what our distribution chain and market needs in order to be successful, ensuring that Lloyd's is the market of choice.
The progress within Future at Lloyd's also continues, with a DA operating model and enhancements being delivered that require market engagement and collaboration to best influence Lloyd’s journey whilst combining the future business model and operating model to deliver the most benefit to our value chain.
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 our customers
- influencing the increased regulatory attention to distribution, oversight, costs, performance, and service quality.
Nigel Roberts (Head of Distribution at Aegis), who has been appointed chair of the DAC, said: “The market must consider its broad DA strategy carefully, through the lens of our coverholders, brokers and customers. 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.
The Committee will view DA challenges through a customer and client lens, and help to provide a broad-ranging, top-down view that supports managing agencies’ ability to make the most of their business opportunities and their highly valuable delegated authority relationships.”
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-disciplinary 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 embedded feedback loops to Lloyd’s and the London International Insurance Brokers Association (LIIBA).
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Notes to Editors
James Milne, Communications Director, LMA
Tel: 020 7327 8405; Email: email@example.com
Richard Adams, Haggie Partners
Tel: 020 7562 4444; Email: firstname.lastname@example.org
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £31billion per annum.
For more information visit: www.lmalloyds.com