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Our Audits

Otter Audit performs delegated authority audits of coverholders and TPAs around the world. Audits are performed on behalf of over 60 insurers in the Lloyd’s and London market.

We have developed an approach that delivers proportionate and actionable audit outcomes that manage the risk in the delegated authority distribution model. This is communicated to the Otter Audit in-house standard which provides clear details that are accessible for stakeholders at various levels.

Our auditors are professional delegated authority auditors from a range of insurance backgrounds. Our auditors are able to provide consistantly high quality audit reports which are delivered on time. This quality and reliability has seen us grow into Lloyd's number one coordinated auditor for 2025.

We deliver good reports on time.

We conduct a variety of audits.

Where an insurer appoints an agent to underwrite, handle claims or complaints on its behalf, that agent has contractual, legal and regulatory obligations to the insurer. Under agency law, the insurer will be liable for the actions of their agent. The insurer will hire us to perform an audit of the agent's performance. This audit will provide assurance and identify areas of risk improvements.

Delegated Underwriting

Firms with delegated authority are called coverholders or MGAs. Delegated underwriting authorises a firm to sell insurance policies on behalf of that insurer.

Claims TPA

An insurer may outsource all or part of the claims handling process to to a third party administrator or TPA. Where that TPA has delegated claims authority, the TPA may be known as a DCA. A coverholder or MGA may also have claims authority.

Complaints

An insurer may grant a firm the authority to handle informal and formal complaints on their behalf. This may include offering redress and managing escalations to the Financial Ombudsman Service.

Run-off

Where an insurance program is closed and no new business can be written, the account is run-off. Run-off accounts need to be closely monitored to ensure appropriate outcomes for customers and to ensure that the premiums, claims and commissions are appropriately allocated.

Pre-bind

Prior to granting a delegated authority, an insurer will perform a review of a firm's risk framework to consider the suitability of the firm for the handling of delegated authority.

At Otter Audit, we audit against a range of insurer and bespoke scopes. The most common scope is the LMA delegated authority audit scope.

An otter detective peering through a magnifying glass to inspect reports.

We have expertise in underwriting, claims, compliance and complaints. Please let us know if there is something you would like us to focus on.

Our proactive approach to regulatory changes ensures that our reports are up-to-date, reflecting the latest requirements including being Consumer Duty ready.

Our relaxed, flexible style of conducting audits helps those being audited feel at ease throughout and comfortable sharing their knowledge of their business.

We pride ourselves on delivering high quality reports on time with advice that strengthens the relationship between the insurer and their agent.

Our Audit Team

Our audit team is lead by Alex Jones (Director). Karen Maka (Head of Operations) and Victoria Catling (Delegated Authority Audit Coordinator) support our audit clients including handling specific or complex requirements.

A competent team of Audit Partners bring over 80 years of combined experience. Their teams are spread across the UK and ready to visit firms wherever they may be including remotely.

Alex Jones

Director

Karen Maka

Head of Operations

Victoria Catling

Delegated Authority Audit Coordinator

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What to expect with our audit process

Our audit process is consistent yet flexible. Ideally, we have a three month lead up to an audit, although this is not a requirement. The steps to arrange and complete an audit is as follows:

Scope and quote

After receiving your audit request, we will review and provide a quote. We aim to keep a standard quote for similar audits, so you know what to expect.

Date and setting

We will reach out to the auditee, provide a brief overview of the audit and estimate the duration. This is a collaborative process with the auditee.

Confirmation of requirements

We confirm all information of the audit requirements to produce a contract certain audit instruction. This will collate information from emails, scope and conversations with the client.

The audit

Whether on-site, remote or hybrid, our auditor will conduct various interviews, review processes and complete file reviews in line with the scoping requirements.

Report writing

Our auditor will prepare a clear and concise written report that summarises the flow of the business and key controls. This will include actionable recommendations and is subject to QA.

Delivery

We pride ourselves on ensuring timely delivery of all reports

Feedback / queries

We continuously develop our approach. Any feedback is welcomed.

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Words from our satisfied clients

We have worked with Otter for several years now and thoroughly enjoy working with all the team. They are one of the most well organised audit firms I have ever dealt with and we have received every single report on time! The auditors delve into a lot of detail during the audits, and if there is something to be found they will find it. Aside from the audits, the team at Otter are a lovely bunch of people and we look forward to another successful year of working with them.

Carolyn Fisher, Munich RE

Delegated Authority Audits