A practical perspective on why DA modernisation should start with operating model clarity, portfolio oversight and data governance before technology replacement.
Getting the basics right before you scale
Much of the conversation around Delegated Authority modernisation tends to focus on systems. Bordereaux platforms, data ingestion tools, automation and of course AI. Yet many of the challenges that insurers experience in delegated portfolios begin much earlier in the operating model. Before the first data feed is ingested or the first validation rule is applied organisations often struggle to answer a more basic question. Why are we delegating in the first place and what do we actually need from our data, systems and processes?
At its simplest Delegated Authority exists to provide access to distribution and underwriting expertise aligned to that distribution. Critically, once authority is delegated the insurer moves from transactional underwriting towards portfolio oversight. The requirement shifts from risk selection to transparency. Firms are no longer deciding which risks to bind. They are trying to understand what has already been bound using their capital and why.
This has operational consequences.
Oversight becomes dependent on the timeliness, accuracy, completeness and relevance of data received post bind. Claims visibility, underwriting performance monitoring and capital allocation decisions are all driven by information that arrives after the event. This makes data quality far more criticalthan in open market workflows where decision making occurs before binding. At the same time there is a commercial balance to manage. Increasing data requirements can improve oversight yet may also create barriers to entry for partners if the operational burden becomes disproportionate to the delegated fee.
The role of technology
Where organisations often become stuck is in attempting to solve these problems through technology before defining their underlying needs. Many policy administration systems remain designed for open market underwriting rather than delegated portfolio management. This creates an operational gap that is frequently filled with manual processes or standalone systems layered onto the side of the core platform. Legacy technology may be blamed yet, legacy processes or organisational mindsets are often equally limiting. Delegated portfolios require a different skill set and a different decision framework that reflects post bind oversight rather than pre bind selection.
Understanding data and workflows
A common first step is to understand the current state of delegated workflows across underwriting, claims, operations and actuarial teams. This includes identifying which data genuinely supports decision making rather than simply collecting information because it is available. Defining success criteria at portfolio level is also important. Many firms struggle to measure whether delegated initiatives are delivering value particularly when governance timelines or onboarding processes extend beyond the underwriting cycle that initially justified delegation.
The strategic implication is that modernising DA should begin with people, processes and data governance before system replacement. Not all legacy needs to be removed immediately. Where core platforms support the business without creating growth constraints, organisations may choose to build modular solutions around them that improve partner interaction or data validation without disrupting core underwriting capability. In practice this may involve wrapping legacy systems with delegated specific processes or task focused tools that integrate with existing infrastructure.
As delegated portfolios continue to expand firms will need to think beyond immediate system constraints and consider how their operating model supports portfolio management at scale.
Future readiness may depend less on predicting the next technology shift and more on ensuring that teams possess the skills, capabilities and governance frameworks required to adapt when it arrives.
If you would like to take part in further Delegated Authority discussions you can join peers at the Delegated Authority Strategy Day taking place on April 23rd in London.
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