If you have granted delegated authorities to third-parties, are you confident that they:
- Have the capability necessary to underwrite your risks?
- Have the appropriate operational efficiency to issue documentation?
- Are capable of efficiently and accurately handling claims where appropriate?
- Are in a position to report and pay as required by the binder?
- Can operate with no errors or omissions taking place which could leave the policyholder without cover?
- Meet FCA requirements and, in particular, are treating the customer fairly?
- Adhere to Lloyd’s requirements where relevant?
- Are not behaving in a way which leaves your business exposed?
ICS has conducted audits for a number of London Market and Lloyd’s underwriters and has considerable experience in this field. We provide an independent, expert and confidential view which could help you avoid the danger of delegating authority without appropriate safeguards.
For more information about coverholder audits please call us on 01892 539600 or email enquiries to us at: firstname.lastname@example.org
An ICS Coverholder Audit includes:
- In depth discussions with key members of staff responsible for managing and operating the facility
- Reviewing how procedures actually operate in practice
- Reviewing a sample of files
- Determining whether transactions are reported and paid in an accurate and timely manner
- Reviewing key issues including treating customers fairly, conflicts of interest, commission disclosure, etc
Based on our findings we will report back to you with:
- A comprehensive assessment of how your authority is being handled
- An impartial view of how the coverholder is resourced and how binder regulations are being met
- A prioritised action plan which will enable you easily to identify any urgent and important issues
The benefits to your business of a coverholder audit are:
- Providing independent reassurance that the scheme is being appropriately handled/giving early notice of any deficiencies which need to be addressed
- Freeing your underwriters to generate income rather than policing coverholders
- Fostering a strong working relationship between underwriters and brokers by removing the auditing role from the equation
- Evidencing good systems and controls underpinned by an independent assessment
- Minimising the regulatory and business risks inherent in delegating authority by keeping firm and regular oversight
ICS also provides a pre-appointment review service of prospective coverholders.