LMA launches 'radical overhaul' of delegated authority model

The Lloyd’s Market Association (LMA) has launched a new project to "re-imagine" the existing business and distribution model for delegated authority (DA).

The project DARE will be led by LMA’s recently-formed Delegated Authority Committee, in partnership with digital transformation technology consultancy 6point6.

The committee will seek market consultation and inputs from managing agents, coverholders, brokers, TPAs and other DA community members to shape the vision and strategy of the future DA model, which will be unveiled in Q2 2021.

LMA noted that acknowledging the known challenges associated with DA, and building on Lloyd’s work with Blueprint Two, project DARE will encourage the global DA community to think differently in re-imagining the model to drive stakeholder value, support growth, introduce efficiencies and reduce cost.

From January 2021, the LMA and 6point6 plan to conduct a series of collaborative workshops, employing customer-centred and design-thinking techniques to engage the global DA community.

DAC chair Nigel Roberts said: “DA is overdue a radical overhaul as part of the market’s vision of becoming the most advanced, data-driven and customer-centric insurance market in the world.

“We must be bold in considering the ideal solution and we are excited to embark on this project that will gather the intelligence required to deliver the best possible solution for our coverholders, brokers, TPAs and customers. This will be a huge collective effort and we are inviting as many people as possible to get involved and have their say.”