IUA publishes second edition of its good practice guide for delegated authorities
The International Underwriting Association (IUA) has published a good practice guide for delegated authorities, highlighting key concerns for insurance companies in assessing new coverholders and managing and renewing binding authority contracts.
The document examines the delegation of both claims and complaints handling, stressing the need to focus on client experience.
The IUA Delegated Authority Underwriting Group published its first good practice guide in 2017. This second edition examines recent regulatory developments impacting the sector, including the implementation of the Insurance Distribution Directive in 2018 and the findings of the Financial Conduct Authority (FCA)’s thematic review of the general insurance distribution chain in 2019. It also looks at the impact of the UK’s exit from the European Union.
Dave Matcham’ chief executive of the IUA, said the guide will help businesses make informed decisions about which functions should be outsourced and how they can be properly supervised. “A lot has happened in the field of delegated authorities since we first published our good practice guide four years ago,” he noted. “Companies are increasingly using this business model to access new markets and that is providing clients with a more competitive choice of coverage.”
The IUA’s London Company Market Statistics Report shows that delegated authority premium underwritten by its members had grown to £3.972bn in 2019, from £2.913bn in 2016.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
