Delegated Claims Administrators

When handling claims, DCAs play a critical role as the face of the Lloyd’s market to many of Lloyd’s policyholders, providing a core service and representing and promoting the Lloyd’s brand worldwide.

Lloyd’s has introduced changes to the way that DCAs are appointed and managed.  These changes support improved policyholder outcomes and reduce operational expenses for managing agents and DCAs. From 30 September 2020 all DCAs require Lloyd’s approval before they can be appointed by managing agents to determine claims.  Lloyd’s expects Managing Agents to perform consistent and robust due diligence when onboarding a new DCA and have continued ongoing oversight of  the DCA.

These changes form part of Lloyd’s vision for delegated authorities: to create a seamless and well-managed ecosystem that enhances customer experience, making it easier, faster, and more cost-effective to do delegated authority business.

The following guidance summarises the DCA approval framework and process. 

Download the guidance for full details

What is a DCA?

The Intermediaries Byelaw provides a list of who managing agents can delegate authority to in order to determine claims.  Firms that are appointed by managing agents that do not fall into one of the other categories listed in the Intermediaries Byelaw require prior approval by Lloyd’s as a DCA.  This will include most third party claims handling providers.

The following do not require approval as a DCA:

• Managing agents
• Law firms*
• Coverholders handling a claim on a policy the coverholder has underwritten

*Law firms that are appointed to handle claims do not need to be approved but should continue to be registered with Lloyd’s by informing delegatedauthorities@lloyds.com of their appointment.

Only firms that are appointed to ‘determine’ claims require approval.  The definition of ‘determine’ means all claims handling activities necessary in order to (i) accept or deny a claim in whole or in part; (ii) agree any amount payable; or (iii) resolve finally any open matter by agreement or, if necessary, dispute resolution.  Loss adjusters and other service provides that merely advise or support claims handling but do not have authority to determine the claim do not require prior approval.

What is the significance of Lloyd's approval?

Managing agents are not permitted to appoint a DCA to determine their claims unless the DCA has been approved by Lloyd’s.

Appointing approved DCAs

If a managing agent wishes to appoint a Lloyd’s approved DCA which is new to that managing agent, the managing agent should check the Insights Hub to find out whether the DCA is approved, and the trading address they are approved under. The managing agent should conduct due diligence in accordance with Lloyd’s principles for doing business prior to appointing a new DCA. Once due diligence has been completed, the managing agent should apply for a new relationship registration prior to inception of the binding authority and/or coverholder appointment agreement by completing the below relationship attestation and emailing this to us.

Lloyd’s will create the relationship between the DCA branch and the managing agent within three working days and will notify the managing agent once this has been completed.

If a managing agent wishes to appoint a DCA branch that already exists on the DCA Register, they should also apply for a new relationship registration prior to inception of the binding authority and/or coverholder appointment agreement. 

To apply for a new relationship registration, complete the below relationship attestation and then email it to us.

Download DCA relationship attestation delegatedauthorities@lloyds.com Visit the Insights Hub for a full list of Lloyd's approved DCAs