Bordereaux Transformation: From Static Reporting to Continuous Delegated Authority Intelligence

Delegated Authority (DA) is a growth engine in the London market, now accounting for around 45% of Lloyd’s premium income, or roughly $26.2bn placed annually through coverholders and service companies. But it’s also a governance challenge.

The binder model depends on coverholders producing risk, premium, and claims Bordereaux that enable MGAs and carriers to see what’s on the books, reconcile money, and evidence oversight.

Yet Bordereaux have behaved like a monthly or quarterly after-action report rather than an operational control. It creates gaps like performance and compliance issues, manual remediation, and uneven confidence in the numbers across underwriting, claims, finance, and compliance.

As Lloyd’s continues to modernise delegated data exchange through Delegated Data Manager (DDM), it establishes a single, trusted repository for risk, premium, and claims data. The direction for the market is clear: to move away from chasing files and toward connected, reliable data that supports continuous oversight.

In this blog, we will explore why traditional Bordereaux reporting no longer meets the London Market’s needs. Our experts will also talk about what continuous DA intelligence looks like in practice.

Key Takeaways

The Challenges with Bordereaux Reporting

The picture the usual cycle – A coverholder sends a Bordereaux spreadsheet, the insurer team spends days checking formats, raising queries, asking for corrections, and then signing it off. Hence, by the time data is prepared, the insurers are looking at something that already happened weeks ago.

It is why delegated authority oversight often feels slow and reactive. When data arrives late, decisions slow down, and it gets harder to see earned premiums and incurred losses.

The impact shows up in three ways:

1. Premium and claims delays occur because bordereaux are monthly or quarterly and issues are found late. With DDM and DCOM connected, bordereaux can be validated against binder approvals on receipt, shifting work from month end reconciliation to in flow exception handling and speeding processing.
2. Leakage occurs because there is limited visibility into exposure, premium, and claims across the binder lifecycle. With a central repository and contract context, teams get continuous visibility and can spot out of limit transactions and unusual loss or premium movements earlier.
3. Compliance risk increases because late or inconsistent reporting makes it harder to evidence control. With structured submission and validation, approvals, and audit history, controls are traceable and aligned to MS3 and MS11 expectations.

In other words, the governance issue is not just late data, but the reconciliation and exception handling workload created by inconsistent structures, missing references, and contract-term mismatches.

Strategic Imperatives in the London Market

The London Market has made the direction clear. DDM (with Tide platform) is designed to act as a single repository for risk, premium, and claims data and reduce the uncertainty of passing Bordereaux between parties.

This shift matters because it brings more structure to delegated reporting. Lloyd’s operating procedures for Bordereaux describe clear roles such as Contract Administrator, Submission, and Transformation, which reinforces that Bordereaux handling is a controlled workflow with ownership and checks within DDM.

The real step-change happens when DDM is connected to DCOM/DCM (contract and oversight context). Then Bordereaux is not just stored but can be validated against binder setup, sections, authority limits, and required references.

• Validate bordereaux transactions against binder period, section structure, approved risk apetitie, and declared classes/territories.
• Check commission/brokerage/tax logic against contract terms to reduce finance queries.
• Enforce required identifiers (UMR/risk IDs/endorsement refs) so settlement and audit trails are clean.

In practice, London Market participants need:

• Faster and unbroken consumption of exposure and loss information which are not weeks behind the binder activity.
• Evidence-ready controls and MI aligned to MS3 and MS11, including ownership, maker-checker approvals, versioning, exception logs, and audit packs.
• End-to-end visibility across binders and coverholders so managing agents can spot issues early and act.

Blueprint Two focuses on redesigning delegated authority as an integrated digital journey, with DDM and DCOM as core components and with the direction of travel towards more standardised, real-time processing of premium and claims. That is what makes integrated execution and governance achievable, because it reduces the time lost to manual transformation and late reconciliation and moves teams to working exceptions as they occur.

What Continuous Delegated Authority Intelligence Looks Like

So, what replaces static reporting? A practical target state is continuous delegated authority intelligence. It is an always-on data flow where Bordereaux become part of daily oversight, not a monthly exercise.

A workable model has four pillars:

1. Continuous data flow

• Ingest Bordereaux in automatically from coverholders using integrations and standard templates.
• Reduce manual uploads and repeated rework across binders.

2. Smart validation

• Validate data as it arrives using business rules and AI checks.
• Catch missing fields, mismatches, and authority issues early.

3. Alerting and exception management

• Send alerts when something looks wrong or breaches limits.
• Route exceptions to underwriting ops, claims, finance, or compliance quickly.

4. Actionable dashboards

• Use one dashboard for exposure, premium, and claims across binders.
• Make oversight faster and decisions easier.

One such example includes a claims Bordereaux where a coverholder reports a payment outside the agreed authority limit or outside the binder period. In the traditional model, it is often caught weeks later during reconciliation. With DDM connected to DCOM/DCM, the entry can be checked on receipt, flagged immediately, and routed to the right owner with a recorded resolution for audit.

Get From Today’s Bordereaux to Tomorrow’s Oversight with TxMinds

At TxMinds, we help insurers move from static Bordereaux reporting to continuous delegated authority oversight across the binder lifecycle.

• Real-time Data Flow: We automate Bordereaux ingestion from coverholders using pre-built integrations, so teams spend less time chasing spreadsheets and more time using the data.
• Smart Validation: We apply AI-driven business rule validation to placement details, risk distribution, and premium and claims checks, so issues are caught early and data quality improves for MS3/MS11 evidence.
• Alerting Mechanism: We trigger alerts for anomalies and breaches through CCM integration, so exceptions are managed quickly instead of showing up late in a month-end pack.
• Actionable Dashboards: We provide a single dashboard for exposure, premium, and claims across binders, so underwriting, claims, finance, and compliance are aligned on one view.

Crucially, our validations can be contract-aware when connected to DDM and DCOM/DC, so bordereaux is checked against binder structure and authority rules, not just spreadsheet completeness.

The outcome is simpler governance, faster decisions, stronger control, and less leakage across delegated authority.