Delegated Authority: The London Market’s Engine in Need of a Digital Overhaul

Delegated Authority (DA) sits at the very core of the London Market. By empowering coverholders — MGAs, brokers, and other approved entities — to underwrite, bind cover, manage policies, and even handle claims on behalf of insurers, DA extends the reach of carriers and delivers scale.

It’s not just a side play: more than 40% of Lloyd’s premium income is generated through DA. It’s fair to say DA is the engine room of Lloyd’s.

But there’s a problem: that engine is running on spreadsheets, emails, and manual oversight. And just like any machine running on the wrong fuel, it’s starting to splutter.

Why DA Matters

Delegated Authority has been a powerful tool for decades because it:

• Gives insurers global reach without building local offices everywhere.

• Enables MGAs and coverholders to leverage their niche expertise.

• Creates efficiencies in distribution, underwriting, and claims handling.

• Drives revenue for both insurers and intermediaries.

  
  

Without DA, Lloyd’s would be smaller, less global, and less agile. But the model comes with a growing set of challenges.

The Pain Points of Today’s DA

1. Data Chaos

The heartbeat of DA oversight is the bordereaux — risk, premium, and claims spreadsheets exchanged between coverholders and carriers. Yet too often these files are late, incomplete, or inconsistent, leading to:

• Mismatched data between parties

• Unreliable management information (MI)

• Delays in reporting to regulators and Lloyd’s

  
  

2. Audit Burden

DA is subject to rigorous audit requirements. But most audits today are:

• Manual and repetitive, involving countless document requests

• Costly, consuming both internal and external resources

• Disruptive, pulling operational teams away from their core work

  
  

Audits are meant to provide assurance — instead, they create fatigue.

3. Compliance Pressure

The introduction of Streamlined Compliance in 2025 raises the bar. Firms must now show continuous oversight and onboarding evidence, not just point-in-time checks. This means that compliance can no longer be treated as an annual exercise. It has to be embedded into daily operations.

4. Claims Oversight Gaps

Regulators demand proof that Delegated Claims Administrators (DCAs) handle claims fairly. But patchy data and inconsistent MI make it hard to demonstrate fairness, increasing regulatory risk and damaging customer trust.

5. Regulatory Scrutiny

DA doesn’t operate in a vacuum. Multiple regulators — the FCA, PRA, Lloyd’s, and IUA — all expect consistent oversight and accurate reporting. Falling short means reputational damage, penalties, and in some cases loss of business.

The Cost of the Status Quo

Left unchecked, these pain points translate into:

• Manual firefighting instead of strategic oversight

• Bounced bordereaux that undermine trust between carriers and coverholders

• Longer, more painful audits with repeat evidence requests

• Compliance headaches with higher costs and higher stakes

  
  

In short: DA is meant to be a growth engine, but it risks becoming a liability.

Why 2025 Must Be a Turning Point

With Streamlined Compliance coming into force, the London Market faces a clear choice:

• Continue patching over problems with more spreadsheets, emails, and manual effort.

• Or embrace digital solutions that make DA faster, safer, and always audit-ready.

2025 will be the year when DA either digitises or buckles under its own complexity.

Conect: The Operating System for DA

This is where Conect comes in. Conect is designed to transform Delegated Authority from a fragmented, risk-heavy model into a digital engine.

Here’s how:

• Onboarding & Compliance – Automated due diligence (AML/KYC, sanctions, attestations), with ongoing evidence capture.

• Bordereaux & Data – Files validated, cleansed, and aligned to DDM, DCOM, and CDR standards.

• Oversight & MI – Dashboards and exception-based workflows to spot risks early.

• Audit – Evidence packs pre-aligned with LMA standards, ready at a click.

• Blueprint Two Ready – Fully integrated with the future state of the market.

• Market Integration – Connecting carriers, brokers, coverholders, and TPAs into one workflow.

With Conect, DA oversight becomes proactive, not reactive. Firms move from compliance pain to compliance confidence.

The Road Ahead

Delegated Authority isn’t going anywhere. If anything, its role in the London Market will only grow. But growth under the old model — powered by spreadsheets and emails — is unsustainable.

The market needs an engine that can handle the demands of modern regulation, data integrity, and global scale.

👉 That engine is Conect.

2025 is the year DA goes digital. Is your firm ready for the future?