Delegated Authority Schemes - a clear case example of the benefit to a client
By Alexandra Richards, Private Clients Development Executive
It doesn’t happen often, but when an insurer trusts a broker to act professionally and have a good working relationship with its clients, they may agree to offer a delegated authority scheme whereby the broker underwrites the risk for those clients insured under the scheme on behalf of the insurer. Furthermore the 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 benefit from bespoke and improved cover, more competitive premiums and that the insurer trusts the broker to own the relationship rather than act simply as an intermediary.
A recent case clearly 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, including high value pieces, than their policy afforded cover for. As the meeting took place on a Friday afternoon I was unable to return to the office before the weekend but assured them that under the delegated authority we had with their insurer I was able to grant the required extension to their cover there and then and make the necessary adjustments the following week.
Over that weekend at a party the client lost a valuable diamond earring which 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 repudiated as the insurer had not been notified of the earrings in advance of the loss and had not agreed the cover. Under their scheme policy however, full cover was acknowledged and the claim was fully accepted by the insurers who, at the time of writing this article, wait to receive the invoice from the client’s preferred jeweller for the replacement earring.
Bruce Stevenson operates under a delegated authority agreement in various areas including high value home and residential landlords insurance. If you would like to learn more about the benefits of being insured under such a scheme please e-mail [email protected] or call 07464 545648