Article written by Stuart Cheers-Berry.

When I joined the Insurance Solutions team at Davies as Delegated Authority Manager I saw an opportunity to make a real impact in an evolving market. The Delegated Authority (DA) space is a critical part of the Lloyd’s and London insurance market, yet it faces significant challenges. From regulatory compliance and data integration to risk oversight and talent shortages, the industry is at a crossroads. My role is to ensure that we help clients not only meet these challenges but also embrace opportunities for efficiency, innovation, and strategic growth. 

Stepping into a new role at a pivotal time 

Delegated Authority arrangements have long been a cornerstone of the Lloyd’s market, enabling insurers to delegate underwriting authority to Managing General Agents (MGAs), Coverholders, and other intermediaries. While this structure offers flexibility and specialisation, it also brings complexity—compliance requirements are growing, data demands are increasing, and oversight expectations are evolving. 

At Davies, I am responsible for developing and maintaining a robust Delegated Authority Management (DAM) framework, ensuring it meets the specific needs of our clients. My role spans managing the approval processes for MGAs, Coverholders, Brokers, and Consortia, as well as overseeing binder arrangements and ensuring compliance with relevant regulatory frameworks. This holistic approach is essential in a market where fragmented oversight can lead to inefficiencies and compliance risks. 

Addressing key market challenges 

As I settle into my role, it’s clear that the DA market is grappling with several key issues: 

• Regulatory compliance: With constantly evolving regulations, particularly within Lloyd’s, compliance has become increasingly complex. Ensuring that all stakeholders within a DA structure meet regulatory expectations requires diligence and expertise. 

• Data quality and integration: The lack of standardised data across the market results in inefficiencies. Many insurers struggle with bordereaux processing and the timely flow of accurate data between underwriters, brokers, and coverholders. 

• Risk management and oversight: Insurers must maintain oversight of delegated underwriting decisions while ensuring they align with their overall risk appetite. Without clear visibility, underwriting consistency can suffer. 

• Talent and expertise: The DA sector faces a talent shortage. With increasing regulatory and operational demands, the need for skilled professionals with deep expertise in delegated arrangements has never been greater. 

A common thread among these challenges is the need for effective technology solutions. In many cases, DA oversight relies on legacy processes that fail to provide the real-time insights needed to make informed decisions. 

Taking a holistic, technology-driven approach 

Many efforts to improve DA oversight have focused on incremental system improvements, but I believe a broader transformation is required. By embracing technological advancements, insurers and intermediaries can significantly enhance accuracy, reduce costs, and improve efficiency. 

For example, at Davies, we have a highly skilled team of bordereaux analysts who ensure data is processed at a consistently high level. This data can be leveraged for claims and underwriting oversight, helping insurers make real-time decisions about specific coverholders, classes of business, and overall profitability. 

Beyond data management, automation and AI-driven analytics have the potential to revolutionise the way we monitor DA performance. By integrating automated tools into the oversight process, we can reduce administrative burdens and allow teams to focus on the technical aspects of writing DA business. 

The road ahead for delegated authority management 

Looking forward, I see a market that is increasingly reliant on expertise, technology, and strategic oversight. The old way of managing DA arrangements—reactive, fragmented, and administratively heavy—is giving way to a new paradigm that prioritises efficiency, transparency, and adaptability. 

As insurers and MGAs navigate these changes, the role of Delegated Authority Managers will become even more essential. Our focus at Davies is to create a ‘one-stop shop’ for writing and managing binder business, providing clients with the tools, insights, and strategic support they need to stay ahead of the curve. 

Harnessing expertise to shape the future 

Delegated Authority is a complex but rewarding space, and I am excited about the opportunities ahead. By combining expertise with technology and a strategic outlook, we can drive meaningful improvements in how delegated arrangements are managed across the Lloyd’s and London markets. 

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