The delegated authority (DA) market is on the brink of change. As of 13 September 2024 Managing Agents have been exploring other options for their own delegated authority systems as Lloyd’s removed Delegated Data Manager (DDM) as a core market service.

What does that mean for the delegated authority market? It means new options, new tech and new possibilities.

For Scrub AI it means we’re a step closer on our mission towards consistent delegated authority data, and we’re offering Managing Agents and brokers the opportunity to join us by moving to Scrub AI’s delegated authority platform.

The state of the DA market

Delegated authority business is a fundamental part of modern insurance practice, with parties using Delegated Data Manager (DDM) to aggregate and report on the data. DDM was introduced by Lloyd’s Delegated Authority Business in 2018 and from 2019 its use was mandated for Lloyd’s Brussels business. Over the subsequent years it was further expanded and is currently the stipulated method of ingesting and reporting on delegated authority data in the UK.

On 13 September 2024 LIMOSS removed DDM as a core market service. For Managing Agents and brokers that means they are able to explore options for their own delegated authority systems to meet their specific requirements.

LIMOSS conducted a survey in 2023 asking Managing Agents, brokers and coverholders for their opinions on the delegated authority market, 82% agreed that current delegated authority management was ineffective. Following the research it was determined that DDM should become an elective service as opposed to a mandated one.

This decision marks a turning point in the insurance sector. This technology has been a cornerstone of daily working practice for many, and embracing other technologies and options can be seen as a strategic shift in both the processing and management of data within the sector.

What does that mean for Managing Agents?

The market has opened up for Managing Agents to investigate solutions for delegate authority systems that meet their specific needs.

As this decision affects the active mandate for submitting Lloyd’s Brussels business and bulking line slips via DDM it’s essential that there is a transition period in place for Managing Agents looking to move away from DDM.

Many Managing Agents have elected to continue using DDM on an annual basis whilst they decide on the delegated authority system that best suits their needs.

New developments and innovations in the DA market

With delegated business currently representing over 40% of gross written premium at Lloyd’s, and over 10% of the General Insurance market in the UK, there are a large number of Managing Agents looking for a new solution.

There is the option to continue using DDM and there are also alternative long-standing binder management platforms in the market.

For those looking for a platform which not only cleans up and validates bordereaux, but also leverages AI in order to learn the nuances of data cleaning on a per-client and a per-coverholder basis, then it’s time to look outside the historic options. That’s where our solution comes in.

Prioritising quality data

We’re on a mission to move the market towards consistent delegated authority data.

Our AI-first delegated authority platform was born out of our current clients’ needs. Many were struggling to accurately aggregate and analyse risk/premium and claims bordereaux; others could not easily report on the number of claims open at a given moment in time, or evaluate how the exposure and risks within a binder had changed over time, and their current technology couldn’t help them. They knew our reputation for cleaning, standardising and validating data, and asked if we could develop a solution to these problems in the delegated authority space too.

Our platform offers unparalleled flexibility in handling bordereaux data, allowing for reliable and consistent analysis and smart reporting. Not only that, but the platform itself is easy to navigate, flexible and learns how you work, not the other way around.

When it comes to processing bordereaux data you need a system that operates in real-time, slots straight into your existing processes, and operates seamlessly behind the scenes to empower Managing Agents, rather than exasperate them. Embracing big data leads to 40-70% cost savings and a 60% improvement in identifying fraud, and being able to do so relies on having the right technology at your fingertips.

That’s our platform’s objective, to provide you with clean, qualified data in real-time, allowing you to analyse performance and conduct, identify trends and inform your pricing and underwriting decisions. It doesn’t stop there though, take a look at some of the benefits that come from switching to Scrub AI:

• Drastically reduce the time spent on data cleaning;
• Minimise regulatory and compliance risks by ensuring data accuracy;
• Leverage data-driven insights giving a competitive edge;
• Enhance fraud detection, minimising financial losses and strengthening overall risk-management giving you confidence in your data as you grow this area of the business.

With a variety of services available, there’s the option to choose the level which suits the business rather than being locked into an unnecessary solution.

The delegated authority market is changing. On the surface it may seem like an uncertain time, but for Managing Agents it’s a time of possibility.

It’s also a time of possibility for the industry as a whole. For too long we’ve accepted incorrect or partial data, increasing financial risk and fraud potential. Technology has evolved and we’re now able to work in real-time, to qualify and clean data as it’s submitted and that’s a powerful place to be.

At a time when Managing Agents are being prompted to choose a new method of managing delegated data, and at a time when the door is open to possibility, it’s worth considering that now is the time to embrace big tech and to embrace consistent, smart bordereaux data by embracing our delegated authority product.

Let’s put you ahead of the curve. Get in touch to request a demo, we’d love to chat!