An interview with Recorder co-founder Matt Hicks ahead of the Delegated Authority Strategy Day.
Delegated Authority (DA) has long been a growth engine for the London market, but as volumes scale, so too do the operational strains beneath the surface. For Matt Hicks, co-founder of Recorder, the biggest challenge facing the model today is not a lack of ambition, but a lack of alignment.
“We consistently see different versions of the truth across the value chain,” he explains. “The insured, the broker, the MGA, the insurer, they’re all working off slightly different datasets. That information asymmetry creates delays, errors and ultimately cost.”
It is a theme that resonates strongly with recent market sentiment. Pre-event survey results for the upcoming Delegated Authority Strategy Day highlight data quality, operational complexity and technology fragmentation as persistent pain points. Hicks believes these issues are deeply interconnected.
“At the core, it comes down to how data is captured and shared,” he says. “If risk data is locked in silos or repeatedly re-keyed between systems, you introduce friction at every stage. And when something goes wrong, you end up relying on retrospective governance, which is expensive and inefficient.”
The cost of fragmentation
The problem is not new, but it is becoming more acute as DA portfolios grow. Many firms are pursuing aggressive expansion strategies, yet the underlying infrastructure has not kept pace.
“There’s a real risk that cost bases scale in line with premium,” says Hicks. “You don’t get the operational leverage you expect. Instead, you get more people reworking data, more reporting overhead and more complexity to manage.”
Part of the issue lies in the proliferation of technology solutions.
The market has seen a surge in AI-driven tools designed to ingest and standardise data, but Hicks cautions against over-reliance on point solutions.
“Many of these tools are effective in isolation,” he says. “But if they’re not integrated properly, they can actually add cost and complexity. You might speed up parts of the process, but you don’t necessarily improve the quality of the outcome.”
This distinction between speed and quality is critical. “Binding a policy faster isn’t helpful if it’s the wrong policy,” he adds. “The focus has to be on enabling better decisions, not just quicker ones.”
Rethinking the role of AI
Despite the hype surrounding artificial intelligence, Hicks is clear about where it delivers the most value in DA today.
“AI is incredibly powerful when it comes to handling raw data,” he says. “Insurance is still heavily document-based, and AI can extract and structure that information far more efficiently than humans.”
However, he draws a firm line when it comes to decision-making. “We don’t want AI making underwriting judgments. That’s where human expertise is essential. The real opportunity is to use AI to remove the ‘busy work’, data entry, manipulation, repetitive tasks, so underwriters can focus on applying judgment where it matters.”
This approach has broader implications for talent and capability within the market. “If you automate the wrong things, you risk hollowing out the skill base,” Hicks warns. “The firms that will succeed are the ones that invest in their people while using technology to enhance, not replace, their expertise.”
From governance to control
Another friction in DA is the burden of governance, with insurers often relying on and demanding extensive reporting requirements to maintain oversight. However, much of this activity is retrospective, inefficient and ineffective:
“There’s a lot of data being requested and shared that isn’t fully utilised,” says Hicks. “It becomes a tick-box exercise rather than a meaningful control mechanism.”
He believes this model is ripe for change. “If you can embed control earlier in the process, at the point of underwriting, you reduce the need for heavy reporting later on. That’s where technology can make a real difference.”
For example, digitising underwriting rules and applying them in real time can prevent risks outside appetite from ever entering the workflow. “Brokers don’t want to spend time on submissions that are going to be declined,” he notes. “Getting to ‘no’ quickly is just as valuable as getting to ‘yes’.”
A shift in market dynamics
Encouragingly, Hicks is already seeing signs of evolution. Newer, more focused insurers are entering the market with leaner operating models and a stronger grip on their data.
“These players have significantly lower expense ratios,” he says. “They’re comfortable with fully delegated models because they trust the data they’re receiving. That creates a more competitive environment, which is ultimately good for customers.”
At the same time, more traditional insurers are beginning to reassess their approach. Historically, many have cycled in and out of DA following periods of poor performance. Hicks argues that better data infrastructure could break this pattern.
“If you have real-time visibility of your portfolio, you can identify issues early and take action,” he explains. “You don’t need to go through boom-and-bust cycles.”
The path forward
So what should firms prioritise as they look to the future of Delegated Authority?
For Hicks, the answer is deceptively simple: a shared, structured data foundation.
“Instead of each party maintaining its own version of the truth, why not work from a common record?” he suggests. “You can still control access and tailor views for different users, but the underlying data is consistent.”
This shift would have far-reaching benefits, from reducing operational overhead to enabling real-time portfolio management. It would also support greater connectivity across the market, an area Hicks believes is critical for growth.
“If MGAs want to be preferred partners for brokers, they need to meet them where they want to trade,” he says. “That means enabling seamless, digital interactions without rekeying data.”
Ultimately, the challenge is not a lack of technology, but a question of execution.
“The tools exist today,” Hicks concludes. “What matters now is how the market chooses to use them. If we can move towards a more connected, data-driven model, Delegated Authority has the potential to scale far more efficiently, and sustainably, than it has in the past.”
These are the exact kinds of discussions we'll be exploring at the Delegated Authority Strategy Day on 23rd April.
If you want to benchmark your approach, share experiences with peers and explore practical solutions, take a look at the full agenda and get involved on the day.
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