What is a delegated authority scheme? Well, for a start, these schemes are rare and don't happen very often.
Delegated authority schemes are set up when an insurer has a strong working relationship with a broker and agrees to offer a delegated authority scheme to broker. This allows the broker to underwrite the risks for those clients insured under the scheme on behalf of the insurer.
This trust may be extended to allow the broker to handle claims on the insurer’s behalf too. Both these arrangements operate within strict guidelines and will have limits of authority, but the benefits to all parties are tangible. In particular, the benefits to the insured may include that they enjoy bespoke, and improved cover, and more competitive premiums.
The insurer trusts the broker to go beyond acting as an intermediary and actually own and manage the relationship.
A recent case demonstrates how a Bruce Stevenson client benefited from being insured under such a scheme. A few weeks ago I visited a client in the west of Scotland to carry out a pre-renewal review of their cover. During the discussion, it came to light that they had significantly more jewellery and high-value pieces than their policy covered. As the meeting took place on a Friday afternoon I was unable to return to the office before the weekend. However, under the delegated authority we had with their insurer I was able to grant the required extension to their cover - there and then. Which allowed me to make the necessary adjustments the following week.
Over that weekend at a party, the client lost a valuable diamond earring. This earring had not been listed on the policy schedule prior to our meeting and which exceeded the single article limit. Under normal circumstances, the claim may have been rejected. The insurer had not been notified of the earrings in advance of the loss and had not agreed on the cover. However, under their scheme policy, the full cover was acknowledged and the claim was fully accepted by the insurers.
All parties were happy and the client was able to source a replacement earring thanks to our scheme. Discover more of the bespoke insurance services we can offer you