Lloyd’s Market Association mulls future business model of delegated business
The Lloyd’s Market Association (LMA) has launched a new Delegated Authority Committee (DAC) to focus on the future business model of delegated business, a move aimed at supporting the growth and innovation of the London Market and its customers globally.
The committee comprises a multi-disciplined group of senior specialists from the Lloyd’s managing agency community to ensure that all disciplines of the insurance product are connected. It will report directly to the LMA Board, with feedback links to Lloyd’s and the London International Insurance Brokers Association (LIIBA).
The new committee will be responsible for informing and guiding the evolution of delegated business - an important aspect of Lloyd’s underwriting, distribution, and claims - which currently accounts for roughly 40 percent 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.
The group’s objective is to establish a "customer-centric vision and future business model" for DA for all disciplines, including customers, clients and Lloyd's carriers.
The committee will establish a business model for DA business that leverages the ongoing initiatives and tackles distribution challenges and acquisition costs to the benefit of managing agents, coverholders, brokers, as well as the customers.
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.”
