By Stuart Cheers-Berry, Delegated Authority Manager 

Delegated Authority (DA) arrangements play a critical role in how many syndicates operate today. They enable scale, access to specialist distribution, and growth across multiple territories. But as DA portfolios expand in size and complexity, the question of oversight is coming under increasing scrutiny — particularly at Lloyd’s. 

Across the market, more DA business is being written than ever before. At the same time, regulatory expectations around governance, controls and accountability are rising. Against that backdrop, many syndicates are asking an important question: is our current DA oversight model really fit for purpose? 

The challenge of shared responsibility 

In many organisations, DA oversight does not sit within a standalone function. Instead, responsibility is often split between underwriting, operations, compliance or finance teams. While this approach can work at lower volumes, it introduces risks as DA portfolios grow. 

Underwriters are naturally focused on growth and performance. Operations teams are often stretched across multiple priorities. Without a clear governance framework, this can create conflicts of interest, gaps in accountability and inconsistent application of Lloyd’s standards. Over time, those weaknesses can expose syndicates to regulatory issues — even where intent and effort are sound. 

Governance first, structure second 

The solution does not always start with building a large, dedicated team. The first step is governance. 

Clear definition of roles and responsibilities is essential, even where DA oversight is shared. Who owns coverholder approval? Who tracks audits and remediation? Who has authority to escalate issues? Without explicit answers to those questions, oversight can quickly become fragmented. 

Training is equally important. Anyone involved in DA — whether in underwriting, operations or compliance — needs a solid understanding of Lloyd’s expectations, Principles for Doing Business and the rationale behind them. DA oversight is highly specialised, and assuming general insurance knowledge is enough can be a costly mistake. 

Technology and evidence matter 

Another pressure point is evidence. Regulators and external auditors increasingly expect syndicates to demonstrate how oversight is being performed, not just confirm that it exists. 

That means documented governance frameworks, up-to-date coverholder approvals, completed audits, tracked remediation actions and clear audit trails. Technology solutions — particularly around bordereaux management, audit tracking and reporting — are becoming essential tools rather than optional extras. They provide transparency, consistency and the ability to demonstrate due diligence at any point in time. 

When is a dedicated DA function the right move? 

There is no single threshold that applies to every syndicate. However, certain indicators suggest it may be time to consider a more formal DA structure: 

• DA premium volume is significant or growing rapidly 

• Arrangements span multiple territories or classes 

• Regulatory engagement or scrutiny is increasing 

• Oversight tasks are becoming too complex to manage alongside day-to-day underwriting 

In these situations, a dedicated DA function — or independent specialist support — can provide focus, consistency and resilience. It also helps remove conflicts of interest by separating growth decisions from oversight responsibilities. 

Beyond compliance 

Perhaps the most important point is that effective DA oversight is not just about compliance. Done well, it supports sustainable growth, improves portfolio performance and protects the reputation of both the syndicate and the wider Lloyd’s market. 

Independent reviews, whether periodic or ongoing, can also play a valuable role. They provide assurance to boards, regulators and auditors, and often highlight improvements that internal teams may not see. 

The bigger question 

As DA continues to grow, the market faces a broader question: should every syndicate have a dedicated DA function, or can shared responsibility still work effectively? 

There is no universal answer — but what is clear is that DA oversight can no longer be an afterthought. As scrutiny increases, syndicates that invest early in robust governance, specialist expertise and the right tools will be better placed to manage risk and support long-term success. 

If you would like to continue the conversation, get in touch with Delegated Authority Manager, Stuart Cheers-Berry at stuart.cheersberry@davies-group.com