LMA revamps 'costly, inefficient, and complex' delegated business model
The Lloyd’s Market Association (LMA) has unveiled its new delegated business model and vision — a "radical departure" from the existing "costly, inefficient, and complex" model that can make the Lloyd’s market difficult to trade with versus competitors in the future.
The association has revamped the delegated authority business model as part of its six-month project, called DARE, to reimagine an end-to-end model and vision for the DA business, through the lens of the market and its distribution partners of brokers and coverholders.
LMA's new data-driven and digitally enabled DA vision establishes a model of choice in pre-placement, placement, and post-placement activities, in a way that re-engineers processes and re-invents how we can distribute, place, oversee and service DA business.
The key components of the end-to-end model will also enable greater competition and transparency of distribution activities at costs, in a way that benefits the market, distribution partners and policyholders.
LMA said the outcomes and opportunities generated by the DARE project will be taken forward as part of an ongoing stream of engagement with the Future at Lloyd’s Programme, LIIBA and the MGAA, which will enable market supported practices and solutions to be designed and developed as part of ongoing market reform, under the oversight and support of the LMA Board.
Nigel Roberts, LMA's delegated authority committee chair said: “It is with great pleasure that we announce the DA model and vision as part of DARE. This new model is the culmination of a concerted market-wide effort and is capable of not only arresting but reversing the declining revenues London derives from DA partnerships.
"It is a solution from the market for the market, and we would urge support for its implementation to enable all stakeholders to benefit from its powerful abilities to drive growth, increase efficiencies and deliver cost savings.”
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