In the insurance industry, Delegated Authority (DA) agreements are crucial for efficiency and reach. These agreements enable cover holders to underwrite policies on behalf of carriers. However, a significant risk often goes unnoticed: the delayed reporting of bordereaux by cover holders.
Bordereaux, which are detailed reports of policies written, claims made, and premiums collected, are typically prepared by cover holders at the end of the reporting period, usually monthly but sometimes quarterly. It might be another week or two before this is sent to the insurer.
This means that a risk written at the beginning of the reporting period may not be communicated to the carrier until the end. On average, this delay can span 5-6 weeks, leaving insurers unaware of their exposure for an extended period. This creates significant systemic risk, as insurers may unknowingly carry risks that impact their ability to accurately assess and manage their exposure.
Once the data is finally received, a vast amount of time and effort from bordereaux technicians is required to analyze it and spot any risks that could have been written outside of the binder or contract terms. This process is labour-intensive and further delays the carrier's ability to respond to emerging risks.
At distriBind, we help insurers eliminate spreadsheets where possible by integrating APIs with coverholders' underwriting systems. In cases where integration is not possible and traditional bordereaux are sent, we take the burden of data analysis from your bordereaux technicians. Our system instantly validates the incoming data across the entire policy lifecycle: risk, premium, and claims, and presents actionable insights through our user-friendly dashboards.
One of our clients identified over £1,500,000 worth of claims they shouldn't have paid, as policies were written outside the contract terms. Had they been with us earlier, they could have avoided these losses. The human eye simply cannot detect these types of errors hidden in millions of rows in Excel spreadsheets. Future-proof your DA and program business processes with distriBind.
Get in touch with us to learn how we can help you minimize your systemic risk!
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