Open Market Correspondents (OMC)
An OMC is an insurance intermediary that does not have the status of a Lloyd's approved coverholder and that introduces business to a Lloyd's broker for placement at Lloyd's on an open market basis.
Intermediaries must be aware of all the regulations for placing insurance with Lloyd’s and must undertake to comply with all legal and fiscal obligations.
Approval is required for Open Market Correspondents (OMCs) handling Canadian insurance business. As part of the OMC application all intermediaries must sign an undertaking. The undertaking provides that the open market correspondent will respect local law and regulations, ensure taxes are paid and provide Lloyd’s attorney in fact with documentation and information that is required for the fulfilment of Lloyd’s reporting requirements.
The Attorney in Fact's office maintains a list of all intermediaries that have signed the undertaking, which must be available for consultation by the regulator or relevant authority.
Click here to access the OMC directory for Canada
Click here to access further information regarding the OMC process and access to the application forms
Becoming a Coverholder
As Lloyd's is licensed in Canada, a Lloyd's underwriter can grant a binding authority permitting the writing of insurance and reinsurance to a coverholder located in this country.
All firms wishing to become an approved coverholder must complete the application process.
Each applicant requires a sponsoring Lloyd's broker and managing agent, who perform their own due diligence of the application before it is submitted to Lloyd's coverholder department for review.
In reviewing an application Lloyd's will pay particular attention to the following areas:
• Suitability and experience of individuals
• Applicants financials
• Authority to operate in specified territories
Individuals carrying out the activities (in Canada) of a broker or agent must be licensed in the Canadian jurisdiction(s) in which the insurance activities are being transacted or must transact all business via an intermediary who is licensed in that jurisdiction.
Coverholders must ensure that a Canadian risk is placed in accordance with Lloyd’s licensing position in Canada and that all relevant taxes, including eg Canadian Excise Tax and other applicable charges are paid. Enquiries pertaining to licensing may be directed to lineage@lloyds.ca.
Coverholder directory
Click here to access the coverholder directory for Canada. This directory includes information on all approved and restricted coverholders.
