What does it mean for you when an insurance intermediary like us has delegated underwriting and claims processing authority?

‘Giving the pen’, as granting delegated authority is often called, is a sign of the trust insurers place in a particular broker’s skill, expertise and client servicing. It is not given lightly!

Primary insurers, including household names like AXA XL, Covea, NIG and Zurich, give an intermediary with specialist experience in the market the authority to underwrite a policy and process claims on their behalf.

For you, the customer, it can mean a more personal service and quick access to exclusive policy terms and conditions tailored to your needs.


Our Bournemouth-based specialist Block of Flats Insurance team has delegated underwriting powers. Because of this authority, the team can weigh up a risk and decide on what terms to offer cover, getting the balance of premiums, excesses and exclusions appropriate for your property. We then do all the administration work to issue policy documents, with the primary insurer bound to honour the agreement in the event of an insured claim.

We have several exclusive policy schemes that include special features that we know blocks of flats usually need. Therefore, we can often find you suitable cover. We are independent and aren’t tied to the insurers who entrust us with delegated powers.

An example of the extras we include automatically, and at no extra cost, is cover for tracing and accessing leaks. This can potentially involve disruption across several storeys and flats in a block and become a very expensive process. Trace and access cover might be excluded or an expensive add-on elsewhere.

Of course, not all brokers with delegated authority are the same. The main difference between them, apart from the market they specialise in, is the level at which they are authorised to act autonomously.

At Gallagher, that level is set high for the Blocks of Flats underwriting team. They currently have six live policies with a buildings declare value exceeding £50,000,000*.


The level of delegated claims authority is also an important consideration when choosing your provider for buildings insurance. We have an in-house claims team with authority to handle the vast majority of claims from start to finish.

At up to £100,000, the value of claims we can handle and pay without any reference to insurers is high by our own market standards. That can mean less hassle and worry for you.

Of course, delegated authority is given to specialist brokers with detailed knowledge of other markets. A broker might, for instance, be offering policies for members of a specific sports association or profession or type of property. Many of the other Gallagher teams have earned such trust and authority in their specialist markets.

For more information, visit our dedicated Block of Flats Insurance page.


*Correct as at 13/01/2023.


The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.