Eliminate the biggest bottleneck in the Delegated Authority value chain – Bordereaux Management!
The overall insurance industry is increasingly moving towards an API-ready landscape, with real-time data exchange via peer-to-peer connections or market-standard data exchanges. The delegated authority (DA) value chain, however, is only partially there. It is still largely reliant on generating, sharing, receiving, and processing spreadsheets and pdfs of past transactions via email or through bordereaux tools.
A leap forward into DA 2.0 (a successful Delegated Authority of the Future) would require end-to-end revaluation and re-engineering of the entire DA life cycle, embedding solutions that support carriers, MGAs, TPAs and brokers alike and building connections between standalone systems by harmonizing data points.
Manual processing and management of the inflow and outflow of bordereaux reports is repetitive, time-consuming, and prone to error. This creates a bottleneck in the DA value chain. A fit-for-purpose bordereaux management tool offers a solution by automating manual processes and simplifying the creation, distribution, and absorption of bordereaux reports.
For many insurers or MGAs who still rely on manual processing of bordereaux reports, some of the biggest challenges they face include:
If a bordereaux management system promises to fix all these problems, does this mean implementing a tool will be an all-in-one solution to the bottleneck? Unfortunately, not. Even for insurers, MGAs, and brokers who have taken the steps towards digitalising their delegated authority business using a tool, challenges persist.
Common issues experienced even after implementing a bordereaux management tool include functionality gaps in different tools, data-related limitations, as well as gaps in the business process and existing landscape.
Despite choosing to implement a fit-for-purpose tool, there can be large administrative overheads and inefficiencies if the tool is not embedded correctly in the delegated authority process. In addition, the genesis of a lot of data problems is upstream – at the point of the new binder agreement.
Hence, defining a new end to end target state in the digital landscape, allows the potential benefits of the technology to be harnessed.
Once the groundwork has been done, good project and change management can support the seamless migration of current binders into the new digitally enabled process. It also ensures adoption and engagement, leaving businesses empowered to use their new bordereaux management tool with confidence.
To maximise the return on investment and truly be part of DA 2.0, insurers and MGAs need to define their roadmap and use technology as the springboard to advance forward.
If you know that your bordereaux management process is not working, are curious to know how it could be improved, or are evaluating bordereaux management solutions, we can be of help.
There are over 15 specific bordereaux management solutions that exist in the market. They vary in the capabilities they offer, how intuitive they are to use, their data approach, tech maturity and stability, servicing model, and commercial structure.
To avoid a bad investment and reduce the likelihood of problems post implementation of a bordereaux management solution, it is wise to conduct proper research about the available market solutions.
Our proven expertise in applying structured methodology and framework will help clients become data and digitally-enabled insurers and MGAs.
Our ongoing market radar activities and in-depth knowledge on the different bordereaux solutions helps our clients make the right investment decision at an accelerated pace.