Context
The LMA has launched a market-wide consultation on the new Computable Binding Authority Agreement (CBAA) model wording that is being developed with the support of Lloyd’s, the London & International Insurance Brokers’ Association (LIIBA), the Managing General Agents Association (MGAA) and the International Underwriting Agency (IUA).
Key points to note and next actions
- The draft CBAA model wording is the product of many months of effort from experts drawn from the London delegated authority (DA) community and the Associations to come up with an updated, robust and accurate binding authority agreement.
- The proposed wording has been structured into a set of 15 modules and designed as a ‘digital object’ for use in ‘data-first’ contract builder software.
- The project is also set to deliver a new digital wordings library to store every component of the new wording – the words as well as the numbers – in a modular, digital format for the first time. The result will be the introduction of truly computable contracts of delegation for the DA market.
- The consultation is intended to allow engagement with all DA stakeholders, including managing agents, coverholders and brokers, to pave the way for smooth adoption and implementation of the new model wordings and associated systems once they are launched.
- The consultation will take place in phases, with different modules being released at each phase, and will run to the end of the year with this current phase due to close on 30 September.
- The consultation is available on the LMA’s DA Reimagined (DARe) microsite: https://www.lmadare.co/2024-consultation. It is seeking feedback in particular on the materials relating to remuneration, complaints, and the management of monies.