The Lloyd’s Market Association (LMA) has joined forces with the London and International Insurance Brokers’ Association (LIIBA) in an effort to lead digital transformation in Delegated Authority (DA) business with the introduction of computable contracts.
Launched in late 2020, Project DARE mostly focuses on putting distribution partners and customers at the forefront of a modern DA model.
By recognizing the crucial role that binding authorities play within the London insurance market’s income, both the LMA and LIIBA are looking to drive efficiency and customer-centricity through the adoption of computable contracts, replacing the traditional word binding authority agreement.
The initiative, which is supported by Lloyd’s, will integrate a computable binding authority contract with Lloyd’s binding authority registration system (DCOM). As a result, this will enable automatic binding authority registration when utilising a computable binding authority agreement (CBAA).
At the same time, this move towards digital contracts is expected to enhance efficiency, ensure data accuracy, as well as boost analytics for a digitally connected marketplace, retaining coverholder business within Lloyd’s.
The commitment of funding by the LMA Board and collaboration with key DA brokers and managing agents, reflects the industry’s readiness to embrace digital transformation.
It has also been revealed, that London Insurance Market Operations & Strategic Sourcing (LIMOSS) will manage the development and provision of CBAA as a market service.
Already, 11 Lloyd’s managing agents have already committed to adoption of the solution, covering 42% of the Lloyd’s DA market.
Rob Myers, Operations Director at the LMA, said: “A computable contract sits at the heart of the DARE vision, and the LMA and LIIBA are committed to working together to realise a more digitally connected marketplace. This initiative represents progress towards a historic milestone in the modernisation of the London market, and we would urge support from all stakeholders to harness its capabilities to drive growth, enhance operational efficiency and deliver cost savings.”
Christopher Croft, Chief Executive of LIIBA, commented: “The delegated authority process is ripe for modernisation and improvement. LIIBA and our members are encouraged by the innovative ideas that the LMA has put forward. We also particularly welcome the commitment to work with us to find solutions that help brokers bring more profitable business to the market from around the world swiftly and efficiently. We look forward to a productive collaboration.”
