We provide external, second line of defence, monitoring of an insurer's delegated authority business and are accredited by Lloyd’s of London to offer delegated authority audit services to Lloyd’s syndicate Managing Agents. We also provide services to insurance companies, branches and intermediaries that have delegated authority contracts.

Delegated Authority Audits

Coverholders represent an important distribution channel to the Lloyd’s market (https://www.lloyds.com/), with over 33% of Lloyd’s premium income sourced through delegated underwriting. The DA model is also utilised in the UK General Insurer market where the International Underwriting Association (“IUA”) is the representative body for approximately 98% of insurers writing £4billion of DA business.

Ongoing monitoring of the BAA or DCA is essential to ensure that those with delegated authority operate under the terms of the underlying agreement. The key controls are:

  • Audit Inspection,
  • insurers validation of the coverholders risks written and paid reporting (bordereaux) through an automated validation program which scans against a number of agreed variables such as risk location, premium, sum insured, coverholders commission,
  • submission of Management Information (MI) to insurers.

The International Underwriting Association has published comprehensive DA guidance at IUA DA Good Practice Guidance

Our services

  • Coverholder audit inspection for Lloyd’s Managing Agents using the latest Lloyd’s of London Market Scopes,
  • Coverholder audit inspection for Insurance Companies and branches,
  • Delegated Claims Administrators (DCA) audits,
  • Onboarding due diligence reviews of prospective coverholders and agents, on behalf of insurers,
  • A follow up service for recommendations made in a Coverholder or DCA audit.

Our expertise and experience

  • Extensive experience of conducting both Agency/Coverholder and TPA/DCA audits across the UK, Europe, Singapore and the US,
  • Delegated authority audits across Surplus Lines Property & Flood/Flood Excess, Liability including PL & EL, Events & Exhibitors, Homeowners, Gadget Insurance, Medical Malpractice, Cyber Liability, Marine Hull & Machinery, Marine Cargo & GiT, Professional Indemnity, Engineering & Construction, Aviation Hull & Liability, Aviation Hull War and D&O,
  • Internal auditor to several Lloyd’s syndicate groups with delegated authority operations.