As the Lloyd’s Franchise Board attempts to improve the quality of delegated authority data entering the market, reinsurance risk exchange CATEX has developed a platform that can help, explains Francis X Fortunato.
The Lloyd’s Franchise Board is apparently concerned about the validity of ‘delegated authority’ data. the new Lloyd’s plan envisions that nearly 40 percent of all lloyd’s premium revenue will eventually be derived from the binding authority route. Delegated authority, when placed in the hands of a trusted Lloyd’s coverholder, is an efficient and fast way to distribute the Lloyd’s brand and take advantage of opportunities globally.
But Lloyd’s is concerned about data integrity. When the syndicate’s performance against its business plan is monitored, Lloyd’s needs to be certain that the hundreds of thousands of insured risks represented by that bottom-line aggregate accurately reflect the premium charged and all subsequent claims.
The more the underwriting process can evaluate risks individually, the better the risk can be priced and the possibility of claims minimised. Historically, that has been hard to do when hundreds of thousands of risks are involved.
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Insurance, CATEX, Lloyd’s, London, Data, IT, MGA