Delegated authorities ‘still burgeoning’, can handle risk array: AM Best

Delegated authorities have shown the growth and performance, driven by an ability to address underserved and emerging risks and with new regional growth drives, to merit a continued positive outlook, the  AM Best ratings agency has said.

The delegated authority segment is “still burgeoning with opportunity” despite some capacity constraints, notably in property, AM Best said.

“The rising number of [delegated authorities] collaborating with insurers to write specialty business is driving the increase in US property/casualty premium generated overall,” analysts wrote.

Some recent growth is attributable to distribution into Europe and APAC. Some is attributable to above-par talent an innovation, analysts believe.

The outlook is constrained by tight capacity for certain risks plus “Ongoing and evolving economic challenges.” Problems in the fronting industry also constitute an “uncertainty” faced.

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