What Is Delegated Authority and Why Does It Matter for Construction Brokers?

If you place construction risk, you’ve probably worked with an MGA without stopping to unpack what “delegated authority” actually means. It changes how fast you can turn a quote around, and how much certainty you can offer a client on a complex risk. 

This guide covers what delegated authority is, what it means for you in practice, and how to access it for CAR, LDI, surety bonds, IBGs and PI. 

What Is Delegated Authority? 

Delegated authority in the insurance space refers to arrangements where insurers entrust third parties with specific responsibilities like underwriting, issuing policies, or handling claims.  

An MGA’s authority is granted through a formal, binding contract.

The insurer sets the terms that can include:  

• The class of business

• Geographic scope

• Line size

• Aggregate premium (the total combined cost of insurance for all members in a group policy, or the total sum of premium payments due over a specific period)

The MGA quotes, binds and issues policy documentation directly. The Financial Conduct Authority treats this as a well-established outsourcing model in the UK market, one it expects insurers to oversee closely even though day-to-day underwriting responsibility is handled by the MGA. 

This isn’t a niche corner of the market. Lloyd’s confirms that delegated underwriting now accounts for around 45% of its premium income, making it one of the primary distribution channels in the London and company markets alike.

What This Means for Brokers in Practice 

For you, delegated authority translates into three practical advantages:  

1. Faster decisions

The MGA doesn’t refer every submission to the insurer, so you get a quote in hours or days, not weeks.  

2. Direct underwriter dialogue

You have direct access to the underwriter pricing the risk, not an account handler relaying responses. If a scheme needs a bespoke condition, you get one-on-one support.  

3. More certain placement on complex risks 

Construction risk rarely fits a standard rating matrix. A delegated underwriter with real authority can adapt the terms for an unusual scheme or a client with a thin trading history, rather than decline because it doesn’t meet the rigid appetite grid.  

Here is an example from a case where our team successfully placed a complex construction risk. We secured a comprehensive combined insurance programme for a principal contractor and construction project manager, carrying out residential cladding remediation and compliance works.  

The placement included:  

• £4 million Contractors’ All Risks cover 
• £10 million Employers’ Liability, Public Liability and Professional Indemnity cover 
• £1 million Directors’ and Officers’ cover 

This is the kind of tailored solution that a managing general agent with delegated authority can deliver.  

For a broader view of the model, Accquis explains what a managing general agent does and where MGAs sit in the insurance value chain. 

What Lines Exance Holds Delegated Authority For 

Exance holds delegated authority across several construction and specialist lines, which include: 

• Latent Defect Insurance (LDI): structural warranty cover for new-build and refurbished developments.  

• Surety Bonds: provides a financial safety net for construction projects ensuring contractors meet their obligations.  

• Insurance-Backed Guarantees (IBGs): protects homeowners and businesses  in the event that a contractor fails to honour their workmanship or product guarantees.  

• Frame and Mass Timber: addresses the unique risks associated with timber-based construction 

• Professional Indemnity (PI): covers for design and consultancy liability on construction projects.  

• Directors and Officers Liability Insurance (D&O): protects company leaders, covering personal liability arising from decisions and actions taken in their professional capacity. 

• Crime Insurance: protects businesses against financial losses from theft, fraud  or dishonesty – that may occur internally or externally.  

• Cyber Liablity Insurance: safeguards businesses against the growing risks of cyberattacks and data breaches. 

Contractors All Risk Insurance (CAR) also sits within our product range and includes quote and bind capability. 

Exance is a part of Accquis’ wider portfolio of specialist insurance brands, each holding delegated authority in a specific niche rather than trying to cover the whole market. 

How to Access Exance’s Delegated Authority Facility 

You can register online to access delegated authority services through our managing general agency in a few quick steps: 

Fill in your details: register as a broker partner through our simple online form, confirm your FCA authorisation and the lines you place.  

Submit your scheme details: submit the specific details of your scheme including project value, contractor track record and any survey requirements. Underwriters use this information to price and scope risks.  

Wait for a response: once you’ve registered as a partner and submitted your scheme details you can expect a response within 24 hours.  

Why Working with an MGA Matters More Now 

Construction insurance is easing overall, but capacity continues to tighten for specific higher-risk segments like remediation work, fire safety retrospectives and complex or higher-risk building types.  

Complex and higher-risk building types also face more scrutiny and narrower terms, even as standard risks see softer rates.  

Accquis is built around this problem and invest in specialist MGAs that hold real underwriting authority for construction, instead of acting as another layer between you and a decision-maker.  

The shift matters for brokers in the UK. The Managing General Agents’ Association (MGAA) reports that MGAs are now the fastest-growing segment of the UK’s property and casualty market, with member firms collectively writing more than £13 billion in gross written premium.  

Delegated authority isn’t a workaround for hard-to-place risk anymore; for construction, it’s becoming the default route. 

Ready to Place Risks with Exance?  

Partnering with us gives you access to a suit of specialist services, dedicated support and expertise from seasoned underwriters. You can expect:  

• Access to our diverse panel of insurers in-house and through our network 

• Dedicated support from a team of experts with deep industry knowledge 

• Access to our broker portal  

If you’re placing construction or specialist risk and want faster answers, direct underwriter access and terms that reflect the scheme rather than a generic grid, register with Exance today.  

Speak to one of our specialists and see how our delegated authority solutions can support your placements.