Insurers around the world extend their distribution and ability to underwrite specialist risks, by delegating their authority to enter into contracts of insurance to expert third parties. These third parties, known as coverholders, provide businesses and individuals with a wide choice of different insurance covers.
Policies offered by coverholders can range from mainstream insurance such as motor or travel cover to specialist niches such as political risks or cyber-liability insurance. The use of these Delegated Underwriting Authorities (DUA) is extremely widespread. For example a global network of over 4,000 local coverholders operates in and brings business to the Lloyd’s market. For insurers, it is essential that they have clear understanding of the risks their coverholders are underwriting, to ensure that they are holding sufficient capital to meet any associated claims. In practice, the flow of information to and from coverholders can be difficult to monitor and manage.
An insurer with multiple coverholders may receive many different reports, provided in a huge range of different formats, from simple spreadsheets to sophisticated electronic messaging. Charles Taylor InsureTech has developed a ground-breaking solution to the management of DUA. Our solution, called TIDE, has been developed in partnership with an insurance technology platform business majority-owned by the Group.
TIDE rethinks the way delegated authority information is handled to help brokers and insurers make data driven decisions and reduce processing and compliance costs. It takes information from any source, into a centralised cloud based platform which processes, standardises and validates data against rules at source, without the need for intervention. TIDE has been extremely well received and is already being trialled by insurers.