Binder Setup
Introducton
Binders (also known as binding authority, delegated authority or delegated underwriting authority) are agreements that state what authority an Underwriting company/Syndicate is giving to an MGA or Coverholder to write insurance on their behalf.
The binder is a physical document lays out the terms of what the MGA/Coverholder can underwrite. Amongst other things, it sets out what classes of business they’re allowed write, what territories they are allowed to write in, what the maximum limit of liability must be, what the policy dates are allowed to be, the length of them and the dates within which they can fit.
In Insureflow binders are configured within the ‘Binder Vault’. Once configured in the vault binders are linked to appropriate products on the product configuration page:
Where a product is B2C this linking must be carried out in both Back-Office and B2C versions of a product.
Crucial Configuration Elements
Binder documents can be lengthy, though there is crucial information needed to create a binder in Insureflow. The critical elements are:
Binder Name
The name that appears for selection in the underwriting process
User Company
The MGA/Coverholder of the binder (James Hallam in the example above
Unique Market Reference (UMR)
In the Lloyds insurance market all binders are provided a unique reference known as the UMR
Agreement Number
Some non-Lloyds biners may have no UMR, but instead have an agreement number. (Some binder, both Lloyds and Non Lloyds, may have both)
Binder Start Date
The earliest inception date of risks attaching to the binder
Binder End Date
The latest inception date of risks attaching to the binder
Binder Shares
Details of who are the Insurers on the binder and the commission they have agreed to pay to the MGA/Coverholder.
Binder Third Parties
Details of who are the Placing Broker on the binder and the commission they will receive. The placing broker is the party who agreed and negotiated the binder agreement between the MGA/Coverholder and the Insurer(s).
Full Configuration Specification
Binder Name
The name that appears for selection in the underwriting process
User Company
The MGA/Coverholder of the binder (James Hallam in the example above
Unique Market Reference (UMR)
In the Lloyds insurance market all binders are provided a unique reference known as the UMR
Agreement Number
Some non-Lloyds biners may have no UMR, but instead have an agreement number. (Some binder, both Lloyds and Non Lloyds, may have both)
Binder Start Date
The earliest inception date of risks attaching to the binder
Binder Extended Start Date
End Date
The latest inception date of risks attaching to the binder
Binder Extended End Date
Year Of Account
Binder Section
Binder Shares
Details of who are the Insurers on the binder and the commission they have agreed to pay to the MGA/Coverholder.
Binder Third Parties
Details of who are the Placing Broker on the binder and the commission they will receive. The placing broker is the party who agreed and negotiated the binder agreement between the MGA/Coverholder and the Insurer(s).
Binder Stamp Template
Binder Users
Binder Authorisation Users
Binder Reference
EEA Binder
Cyber Binder
Binder Short Reference
Lloyds Risk Codes
Class of Business
Applicable Territories
Gross Premium Currency
Notification Percent
Credit Control Workflow
Additional Info
Setting up binder number of decimal places:
Find the binder question
Add in the following configuration to the correct question options
Value: decimalPlaces
Filter: any integer less than 14
If option not set or invalid number set, defaults to 4dp
Last updated