Delegated Authority: How do you know you are doing it right?

In the ever-evolving insurance landscape, Managing General Agents (MGAs) face a critical question: ‘How do you know you’re doing it right?’ This question lay at the heart of the MGAA Market Briefing of Tuesday 19 March titled ‘Delegated Authority – How do you know you are doing it right?’ where GreenKite’s experts explored the complexities of ensuring operational efficiency and compliance in managing delegated authority arrangements.

The central message of the webinar centred around the importance of achieving operational efficiency while maintaining compliance with Financial Conduct Authority (FCA) requirements, particularly the Consumer Duty. In a sector where adherence to regulatory standards is critical, understanding the nuances of delegated authority management is essential for MGAs to thrive.

The webinar aimed to provide practical insights and strategies for businesses to effectively manage delegated authority’s complexities. Here’s a breakdown of the key topics covered:

Workflow management

Efficient workflow management lies at the core of effective delegated authority operations. MGAs must streamline processes, automate tasks, and implement robust systems to ensure seamless onboarding and management of delegated authority arrangements.

Bordereaux management

Accurate and timely bordereaux management is crucial for compliance and operational efficiency. MGAs must implement robust systems for data collection, validation, and reporting to meet regulatory requirements and facilitate informed decision-making.

Compliance

Compliance with regulatory standards, including the FCA’s Consumer Duty, is non-negotiable for MGAs. Comprehensive compliance frameworks, regular audits, and ongoing monitoring are essential to demonstrate adherence to regulatory requirements and mitigate compliance risks.

Data protection

Data protection is a key consideration in delegated authority management. MGAs must ensure compliance with data protection regulations, safeguarding sensitive information and maintaining customer trust.

Operational efficiency

Operational efficiency is critical for MGAs to thrive in a competitive market. Streamlining processes, leveraging technology, and investing in training and development are essential for enhancing operational efficiency and driving business growth.

Achieving operational efficiency and compliance in managing delegated authority requires a strategic approach and a commitment to continuous improvement. By leveraging insights from the webinar and implementing best practices, MGAs can confidently answer the question, ‘How do you know you are doing it right?’ and position themselves for long-term success in the insurance industry.

If you are seeking any help, GreenKite is here to support you. Please contact our team at compliance@greenkiteassociates for expert assistance.