A new delegated authority committee (DAC) has been formed by the Lloyd’s Market Association (LMA) as it looks to establish a customer-centric vision and a future business model.
According to the association, DA business currently makes up around 40% of the market’s annual gross written premium but has lacked a strategic market committee that could provide it with focus. Now it is looking to put this right with the committee to emphasise engaging with customers, clients and the market; influence increased regulatory attention; and establish ongoing initiatives and tackle distribution challenges and acquisition costs.
“The market must consider its broad DA strategy carefully, through the lens of our coverholders, brokers and customers,” said Nigel Roberts, head of distribution at Aegis and chair of the DAC. “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, while 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.”
The committee will be made up of a group of senior specialists from across the Lloyd’s managing agency community.
“Delegated Authority business and the related client and customer base is critical to the Lloyd’s market,” said Lee Elliston, claims director at the LMA. “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.”
