What is the primary role of a broker in relation to a delegated authority scheme?

The primary role of a broker in a delegated authority scheme is to place the scheme with an insurer. In this context, the broker acts as an intermediary, facilitating the connection between the client (or insured) and the insurance company. The broker's responsibilities include advising clients on suitable insurance products, negotiating terms with insurers, and ensuring that the delegated authority arrangements meet the insurer's criteria.

Delegated authority schemes allow brokers to underwrite risks on behalf of an insurer based on pre-agreed terms, which streamlines the process and can enhance the efficiency of placing particular types of risks. This arrangement underscores the broker's role in strategically managing client relationships and ensuring that the insurance needs are effectively met.

The other possible roles, such as providing legal advice, settling claims directly, or independently assessing risk, do not align with the core responsibilities of a broker within this specific context. Legal advice is typically outside the broker's expertise and is better suited to legal professionals, while settling claims is generally the responsibility of the insurer or specific claims handlers. Risk assessment does involve brokers, but within a delegated authority scheme, their primary responsibility is to ensure the scheme is successfully placed with an insurer.