Insurance Age and Axa release the first in a series of whitepapers to help brokers and MGAs launch schemes and delegated authorities.
With an estimated value of more than £8bn in gross written premium, schemes and delegated authorities continue to be a crucial element of the market landscape.
The market is reportedly growing 15% year-on-year and, of the brokers operating in this space, half of them grew their schemes business in 12 months, 39% remained static and only 11% witnessed a decline.
Placed in the context of an increasingly volatile market, the attractiveness of schemes becomes obvious.
But for every successful scheme, there are countless others that either failed or never made it past the concept stage.
It is not as simple as coming up with an idea, selling that idea to an insurer and waiting for the money to roll in. Months of preparation, negotiation and patience are required to make a scheme or delegated authority work.
Robert Munden, chief underwriting officer, Gresham Underwriting said: “[Not all schemes] work. We’ve had two or three that haven’t worked because we don’t have the right data or we’ve become convinced that the data doesn’t work for us, the insurer or the distributor.
“It’s very important to be able to act quickly in these circumstances – if it’s not working or not going to work, you need to kill it and move on to the next opportunity.”
So to help brokers and managing general agents Insurance Age has teamed up with Axa for a new series of videos and white papers, Scheme Smart.
The first edition in the series focuses on getting a scheme or delegated authority up-and-running in the first place.
Among the topics it covers are:
- Getting started
- Pitching an idea
- Readying for launch