Delegated underwriting authority is a broader concept covering the transfer of underwriting decision‑making from UK insurers to third parties such as MGAs, coverholders, or schemes, while leaving the insurer ultimately responsible for outcomes. Insurance professionals must perform due diligence on partners, set robust governance and MI requirements, and ensure alignment of incentives and remuneration, recognising that effective delegated underwriting can drive growth and efficiency but, if poorly controlled, can create material conduct, reputational, and capital risks.
