A new London company market committee is being established to discuss delegated underwriting authorities. The group will be operated by the International Underwriting Association and is being set up in response to a growing number of queries about the subject from its member firms.
Delegated agreements allow insurers to delegate their underwriting authority to coverholders who may issue policies and handle claims on the insurer’s behalf. Such arrangements are a popular business model for many IUA companies.
Dave Matcham, IUA Chief Executive, said: “There is an increasing regulatory focus on delegated authorities and insurers are under pressure to make sure that their oversight of coverholders is diligent and robust.
“As a result the IUA is receiving more and more questions about how companies can fulfil their obligations. Underwriting, claims and compliance issues have all been raised. There is also concern about how delegated authority agreements will be impacted by various business process modernisation initiatives underway in the London Market.
“It seems, therefore, that the time is right to create a new group that will complement our existing underwriting and claims committees for different business classes.”
The IUA Delegated Authority Underwriting Group will be open to all association members involved with such business. In addition to acting as a forum for discussion it will represent the interests of practitioners to government, regulators and other bodies where appropriate.
It is expected that the new committee will meet on a monthly basis. Helen Dalziel, Senior Market Services Executive at the IUA, will serve as its secretary. Anyone interested in joining the group is asked to contact her on 020 7617 5449 (email firstname.lastname@example.org).
About the IUA
The International Underwriting Association of London (IUA) represents international and wholesale insurance and reinsurance companies operating in or through London. It exists to promote and enhance the business environment for its members.
The IUA’s London Company Market Statistics Report shows that premium income for the company market in 2013 was £17.445bn with a further £6.831bn controlled by London but written elsewhere. These results are based on a comprehensive survey of 57 companies and combined give an overall intellectual and economic premium total of £24.276bn for the London company market.