Feedback sought from across the market on new digital-ready model wordings for binding authority agreements
London, 16 September 2024: The Lloyd’s Market Association (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, LIIBA, MGAA and the IUA.
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.
Nigel Roberts, AEGIS London and Chair of the LMA’s Delegated Authority Committee, said: “A digital marketplace must include DA business. Over the last two years, we have been working towards creating a new computable contract that the DA market can adopt with ease and benefit from in terms of efficiency. I very much hope the whole market will take time to participate in the consultation, so that we can step seamlessly into a new era of modular wordings stored online for the first time – a long overdue step for underwriting efficiency.”
Carla Wise, Delegated Authority Manager at the LMA, commented: “We are moving closer towards a more digitally connected marketplace. This consultation is an important milestone in the modernisation of London market DA business. We invite feedback from all those involved to ensure that the proposed wording is right for the market and can be easily adopted by all brokers, underwriting teams and coverholders. We thank those who have been and continue to be involved.”
