News

Weekly News RoundUP – 7th February

Findings from AM Best’s recent global survey of rated carriers reveal that delegated underwriting authority enterprises (DUAEs) have been rated  “critically important” due to their ability to deliver micro-specialisation and tailored solutions. With delegated authority business doubling from £10.4bn in 2018 to £22.1bn in 2023, a new report from Oxbow Partners says carriers “need to have a deliberate strategy for DA with appropriate capabilities”. Finally, analysis from Marsh indicates that global commercial insurance rates fell by 2% in Q4 of 2024, with cyber declining by 7%.

AM Best’s DUAE Market Segment Report (Source: AM Best)
AM Best’s findings show that 70% of insurers expect premiums sourced from DUAEs to grow. Furthermore, with technology becoming a cornerstone of DUAE operations, carriers are benefitting from lower operational costs and quicker turnaround times.

Set out a strategy for Delegated Authority/MGAs (Source: Oxbow Partners)
Management consultancy, Oxbow Partners, says that the delegated authority market “offers ample opportunity” to carriers but that “winning models are yet to be established”.  A commercially robust DA strategy will be key to success.

Securing clarity from the FCA on commission disclosure rules for MGAs (Source: Insurance Business Magazine)
The MGAA has engaged with the FCA to establish the “distinct role of MGAs as agents of insurers rather than intermediaries” in relation to commission disclosures to leaseholders. The association sought this clarity to enable its members “to operate confidently within the regulatory landscape”.

Global Commercial Insurance Rates Drop in Q4 for 2nd Consecutive Quarter: Marsh (Source: Insurance Journal)
Marsh’s Global Insurance Market Index shows that global commercial insurance rates fell by 2% in Q4 “marking the second consecutive quarterly decrease following seven years of rising rates”. Some of the decrease has been attributed to “intensified competition in commercial property insurance” and “accelerated rate reductions for cyber risks”.