What is delegated authority in insurance?

Delegated authority is the permission granted by an insurer to another party to act on the insurer’s behalf, either when it comes to underwriting or claims handling processes.

What are the benefits of delegated authority?

• The option to offer unique products to market.
• From a capacity provider standpoint, the ability to access niche markets without having to develop your own products.
• The ability to have your own brand on products.
• Being able to access to a specialist insurer which in turn can make sure the product is priced adequately and competitively.
• A higher commission is offered than if a product is sold as an intermediary.