How do I place risk at Lloyd's

Lloyd’s is licensed to underwrite business in over 70 territories and can accept risks proposed from over 200 countries and territories in accordance with local laws and regulation. These licences offer us broad access to major insurance and reinsurance markets worldwide. See www.lloyds.com/crystal for more details.

Insurance intermediaries
Lloyd's underwriters do not generally deal directly with policyholders. Instead, business is accepted by Lloyd's underwriters through the following intermediaries:

Lloyd's brokers - insurance business is generally brought to Lloyd's by Lloyd's brokers who are insurance broking firms accredited by Lloyd's to broke insurance business at Lloyd's.

Coverholders - Lloyd's underwriters may delegate their authority to enter into contracts of insurance to an intermediary known as a 'coverholder'. In such circumstances the general principle is that the coverholder acts as agent of the Lloyd's underwriters (rather than as agent of the policyholder).

Registered Open Market Correspondents - certain brokers are registered as Open Market Correspondents which permits them to negotiate contracts of insurance with the Lloyd's market through a Lloyd's broker. Details of which jurisdiction this applies to can be found here.


Payments to intermediaries
Intermediaries receive payments in a variety of ways, which may include the payment of commissions. Lloyd's strongly supports the disclosure and transparency of these commission arrangements. A policyholder may ask the intermediary with whom the policyholder deals for details of how and by whom the intermediary is being paid.

Ownership and other financing links to intermediaries
Under the terms of the Lloyd's Act 1982, Lloyd's brokers are prevented from being Lloyd's managing agents or being associated with managing agents. (Lloyd's underwriters accept business as members of syndicates each of which is managed by a 'managing agent').

Lloyd's also has risk management procedures in place in respect of the relationship between Lloyd's managing agents and any related companies that act as intermediaries. This is to ensure that the managing agent makes proper disclosures of any such arrangements. A policyholder may ask the intermediary whom he is dealing with to disclose if it is a related company to a Lloyd's managing agent