MGA’s hear Lloyd’s plans for delegated authority business

The interior of the Lloyd's building in London

Managing General Agents yesterday heard how regulation will impact the way they do business in the future.

Speaking at a Lloyd's presentation to representatives of more than three quarters of the Managing General Agents' Association, Lloyd's delegated authorities head Peter Montanaro outlined plans to improve distribution.

"MGAs are an important part of the Lloyd's distribution chain. The market must therefore continue to ensure these entrepreneurial businesses are able to operate effectively while ensuring they manage their relationships to appropriate standards and respond appropriately to the increased regulatory focus on conduct risk," Montanaro said.

He continued: "The level of interest and engagement from the MGAA members today demonstrates this is a mutual objective and the team at Lloyd's intends to work closely with the Association to ensure the goals of all parties are delivered".

New Lloyd's market initiatives were outlined which included the consumer product binding authority project, which combines coverholder auditing, the introduction of a new level of underwriting authority, enhanced due diligence and a fifth minimum standard for delegated underwriting focussed on conduct risk.

Peter Staddon, MGAA managing director, said: "Our members understand the importance of appropriate regulation. The association is working with all regulators to ensure that the distinctive position of the MGA in the distribution chain is recognised, understood and reflected in their thinking.

"We welcome the Lloyd's market's proposals for delegated authority business. They are in line with our focus on professionalism and will help to ensure the benefits MGAs bring to the market are clearly identified."

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