This article is by Darren Underhill, SVP, London Market Strategy, Alacrity Solutions
The rapid increase of US delegated authority and speciality insurance at Lloyd’s is one of the market’s biggest success stories, and with 40% of Lloyd’s global premiums held by US customers today, this segment has become central to its ongoing growth.
That growth however, is currently adapting to a more formal governance structure, brought in earlier this year as part of Lloyd’s 2026 Market Oversight Plan and the PRA’s 2026 priorities. Neither of these moves were out of the blue. They essentially formalised a direction of travel towards a sharper focus and tighter governance that’s been building for a while, which, in my view, is positive for the sector. But what is quickly emerging is a growing gap between the pace the US market moves at, and the governance standards London expects, with many claims partners built to serve one half of the equation well, but rarely both.
It’s a gap that comes up constantly in my conversations with managing agents and brokers, and one that only seems to be getting more pronounced. For many years, agents and brokers found that such gaps in speed or governance were often absorbed somewhere in the system. Now, with performance monitored far more closely, combined with the ability to work at increased pace thanks to new technologies, that’s no longer true, and what used to be a minor friction point is becoming a real commercial risk for those relying on partners that can only do one half of the job well.
In practice, treating speed and governance as a trade-off could see insurers risking customer and broker dissatisfaction due to delays in settlement, increased oversight for failing to meet audit requirements, or a loss of confidence from a managing agent due to poor reporting quality or operational visibility. None of these scenarios are good for the insurer or for the continued long-term growth of delegated authority within Lloyd’s.
As someone whose job sits at the intersection of speed and governance, I strongly believe the two shouldn’t be treated as a trade-off. In fact, as the market continues to move in this direction, delegated authorities must deliver both to succeed. That means having genuine expertise in US execution: knowing state-by-state regulation, moving fast on the ground and being litigation-savvy; while complying with London’s industry-leading governance standards.
Doing this means building speed and governance into one operating system from the start, not bolting one on after the fact, or treating them as competing priorities, as has historically been the case. It’s a design choice that’s entirely achievable, and one that managing agents and brokers should be actively looking for, and asking of, prospective partners.
It starts with putting the right governance structures in place. Beyond basic market compliance, cover-holders need to have clean reporting systems and operational transparency as the foundation of their operating model. For example, ensuring consistent management information and bordereaux cadence alongside explainability at the point of decision. These foundations provide the building blocks for better data quality, audit-readiness, and ultimately performance, which are increasingly important for managing agents who need responsible and reliable partners to work with.
While strong governance structures are being put in place, the model must also optimise for speed. For me, this is twofold. Firstly, there must be genuine US market expertise. A hurricane in Florida looks very different to a snowstorm in Michigan, or a wildfire in California. Not just through the needs of the cover-holders in each situation and region, but through the court system if litigation occurs. Secondly, agents and brokers should look for a US mindset to innovation. It’s striking to me that ONS data shows across sectors the US produces almost 20% more output per hour than the UK. This is no different in insurance, where US companies often have a culture in which teams are constantly looking for ways to improve processes or try new ways of working – rather than being wedded to doing things, ‘as they’ve always been done’.
Many US insurance companies are also fast to implement new technologies, such as Artificial Intelligence. A report last year found that nearly half (47%) of US insurers have a well-defined roadmap for AI implementation, compared with just 16% in the UK. While it’s perhaps a cultural norm for UK businesses to take a more cautious adopter approach to new innovations, keeping pace with technological change and practicing responsible innovation is something the London insurance market must address to remain attractive for US customers.
Stronger standards and governance requirements are only positive for delegated authority within Lloyd’s, and the growth trajectory of recent decades can continue, with those that prioritise speed and governance equally from the outset being the ones best placed to capture it. Speed and governance were never destined to pull in opposite directions. Insurers who prove that, rather than treating it as a trade-off, won’t just meet the standard, they’ll set it, and the sooner that becomes how the market works, the stronger the growth story gets for everyone building it.
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