As our industry changes, AM Best is seeking to give more transparency into Delegated Underwriting Authority Enterprises (DUAEs). DUEA is a blanket term for third party entities appointed by insurers or reinsurers to perform various functions on their. Typical third party entities are MGAs, MGUs or program administrators who perform functions from soliciting and underwriting risks, binding and administering coverage to settling claims.
DUAEs are not new to the industry, however they are becoming increasingly important sources of business and growth. During this year’s Review and Preview Conference, AM Best introduced Best’s Performance Assessment (PA), a new draft methodology to deliver transparency.