Appointments to senior positions

Lloyd’s requires that all appointments to senior positions are notified. Notifications should be made via lloyds.com using the forms on the next pages. Notification should be made at the same time as any approved persons application to the FSA.

What is the process?
When making a senior appointment, underwriting agents / approved run-off companies should comply with the following process:
  1. Firm speaks to Lloyd’s Head of Risk Management or their Risk Executive to discuss a proposed senior appointment
  2. Prior to the appointment, firm completes electronic notification form (see notification of appointment to senior position form). Please note that you will first be required to confirm that the individual has made the surplus lines declaration before providing the details of the proposed senior appointment.
  3. Unless Lloyd’s indicates within three business days that further information is required, the firm may submit its “Approved Person” application to the FSA
  4. Firm receives notification of approval from FSA
  5. Firm completes electronic confirmation form (see confirmation of new senior appointment form)
  6. Separate to the above process, Lloyd’s Franchise Performance Department will continue to approve intended changes to Active Underwriters or Run-Off Managers.

 

When does the new process apply?
The above process applies to all underwriting agents and approved run-off companies in respect of any of the following appointments:
  • Director of a managing agent or member’s agent
  • Director or partner of an approved run-off company
  • Active underwriter
  • Run-off manager

What about changes to individuals in senior appointments?
A separate electronic notification will be required for termination of appointments or changes of details. (See the notification of amendment form and the confirmation of amendment form).

How does the new process deal with US Surplus Lines business?

With regard to surplus lines business transacted in the USA, Lloyd’s will continue to report to the NAIC on behalf of the Market in respect of all persons appointed to the above senior positions. To facilitate this, individuals to be appointed to one of the senior positions listed above will be required to make a declaration (surplus lines business) in a form prescribed by the NAIC.

The declaration can be made by the person being appointed to the senior position as part the electronic notification process. The declaration may also be confirmed on behalf of the person being appointed, provided that the person completing the electronic notification process has the authority of the individual in question to confirm the declaration. In all cases, it is recommended that a record is kept evidencing that the individual making the declaration has read it and, where appropriate, has agreed to it being made on his behalf.

What are the approval criteria for senior appointments?
While Lloyd's requires that all new senior appointments are notified as well as any changes to appointments, Lloyd's no longer formally approves senior appointments and the old Individual Registration process has now been revoked.  However, pursuant to paragraph 42A of the Underwriting Byelaw, Lloyd's retains the power to require the removal of any senior appointment (or may prevent a senior appointment being made) if Lloyd's decides that a person is not fit and proper or otherwise suitable.  The criteria that Lloyd's will apply are set out at paragraph 10A of the underwriting Requirements (Chapter 1).  

Where can I find more information?
Market Bulletin Y4126 (60KB, pdf) was issued on 22 February 2008.

Last updated on 12 Sep 2008