Posted on: 29 March 2021
A new good practice guide for delegated authorities has been published by the International Underwriting Association (IUA). The document highlights key concerns for insurance companies in assessing new coverholders and managing and renewing binding authority contracts. It also examines the delegation of both claims and complaints handling, stressing the need to focus on client experience.
The IUA Delegated Authority Underwriting Group first published a good practice guide in 2017. This has now been updated with the launch of a second edition that examines a number of recent regulatory developments impacting the sector.
The new guide considers the implementation of the Insurance Distribution Directive in 2018 and the findings of the Financial Conduct Authority (FCA)’s thematic review of the general insurance distribution chain in 2019. It also looks at other areas highlighted by the FCA and the impact of the UK’s exit from the European Union.
Dave Matcham, IUA Chief Executive said: “A lot has happened in the field of delegated authorities since we first published our good practice guide four years ago. Companies are increasingly using this business model to access new markets and that is providing clients with a more competitive choice of coverage.
“There are, however, many important questions to be contemplated about which functions should be outsourced and how they can be properly supervised. Our guide is designed to help firms tackle these issues and keep abreast of all the relevant regulations with which they need to comply.”
The IUA’s London Company Market Statistics Report shows that delegated authority premium underwritten by its members has grown by around £1bn in recent years. A total of £3.972bn was recorded in 2019, compared to £2.913bn in 2016.
Copies of the ‘IUA Good Practice Guidance for Delegated Authorities’ are freely available to download from the publications section of the IUA website (www.iua.co.uk/publications).
