There are two main ways you can place a risk at Lloyd's, through a Lloyd's broker, or through a Lloyd's coverholder or agent. Less commonly people access the Market via a service company or Open Market Correspondent.
US surplus lines risks placed at Lloyd's can only be underwritten by Lloyd's syndicates approved by the National Association of Insurance Commissioners (NAIC) who appear on the NAIC Quarterly Listing of Alien Insurers.
Lloyd's brokers place risks in the Lloyd's market on behalf of clients. These brokers use their specialist knowledge to negotiate competitive terms and conditions for clients, seeking coverage from underwriters in the Lloyd’s market.
There over 180 accredited firms of brokers working at Lloyd's, many of whom specialize in particular risk classes. Each Lloyd's broker is required to demonstrate an understanding of the Lloyd's market as part of Lloyd's assessment of its suitability to be accredited as a Lloyd's Broker.
How can a licensed US broker find a Lloyd’s broker?
Use our market directories to find an accredited Lloyd’s broker:
Lloyd's broker directory
Non-Lloyd's brokers dealing direct with managing agents
If you are considering dealing direct with a managing agent you should first read part 3 of Guidance to managing agents on the acceptance of business from non-Lloyd's brokers.
Coverholders are firms worldwide who are authorized by Lloyd’s syndicates to enter into contracts of insurance and/or issue insurance documentation on their behalf. There are a number of coverholders in the US that brokers can contact directly to place business.
Lloyd's coverholder directory.
Open Market correspondents are only active in Illinois, Kentucky and the US Virgin Islands.
An OMC is a firm that produces business to a Lloyd’s broker for placement on an open market basis. Lloyd’s requires that firms in certain overseas territories must be approved or registered by its attorney-in-fact or general representative before they can produce business to one or more sponsoring Lloyd’s brokers for placement on an open market basis.
Open Market Correspondence directory
Service companies are similar to coverholders.They are responsible for underwriting a significant and increasing amount of Lloyd’s business. In many cases, this is achieved by a Lloyd's managing agents establishing remote offices which underwrite for Lloyd’s syndicates by means of binding authorities. Service companies are then operating as wholly owned coverholders in the US. This means that in addition to underwriting, they are frequently issuing documentation, dealing directly with intermediaries, handling insurance monies, handling and settling claims and operating their own IT systems.