All Lloyd's coverholders have permission to conduct business on behalf of Lloyd's underwriters in their own domicile.
A coverholder proposing to do business in any country beyond its domicile must first obtain Lloyd's permission.
When extending a coverholder's approval, we consider the country required as part of a region which, once approved by us, will permit the relevant managing agents should they wish, to grant the coverholder authority to enter into contracts of insurance for all countries in that region.
The binding authority agreement specifies the countries in which the coverholder is authorised to do business on behalf of the managing agent. Regional approval does not amend the binding authority agreement. Only the managing agent can grant authority to a coverholder (via the binding authority) for a country or countries in which it may do business.
The coverholder, broker and managing agent should check the relevant country requirements as outlined on Crystal, Lloyd's Global Trading Information system.
The regions are:
- European Economic Area (EEA)
- Australia
- Canada
- Switzerland
- USA - all States and territories (excluding the US Virgin Islands)
- US Virgin Islands
- Other licensed territories (in other words, territories other than those listed above which are shown here)
- Non-licensed territories (in other words, anywhere in the world other than those listed above)
For a list of countries and their corresponding regions please see the regional mapping document
Mapping document (30KB, xls)
Applications for regional approval can be requested by the Lloyd’s approved broker or direct-dealing managing agent via Atlas. The extension must be supported by the lead managing agent.
Fore certain regions we require extra information to support the request:
European Economic Area (EEA)
No additional information required.
Notes:
- If a coverholder located in the EEA wishes to provide cross-border services to another EEA state(s), it may do so upon completion of the process for notifying its home-state market regulator of its intention to exercise ‘passporting’ rights.
- If a coverholder is Not located in the EEA but wishes to provide cross-border services and/or carry on business in an EEA state or states, it may do so provided it does not carry on intermediation business in the EEA and all transactions are handled via a registered EEA intermediary.
- UK domiciled firms should notify the FSA by completing the relevant standard form of notice of intention. Please follow the link: www.fsa.gov.uk/pubs/forms/passport_eea.doc
Australia
Attach:
- Details of the product or classes that the coverholder will handle in respect of Australia.
- Details of how local taxes and charges will be paid
- Examples of the policy wording that should be used. Alternatively, if standard Australian forms are used, please state the form(s) used and confirm that they have not been modified.
Canada
Attach:
- The names of the province(s)/territory(ies) in which the coverholder intends to write business.
- The name(s) of the licensed Canadian intermediary(ies) and adjuster(s), in each province/territory in which business will be written.
- The type of business to be written.
- Whether the coverholder proposes to write the following:
• Automobile business,
• Commercial liability business in the province of Ontario
• Hail (in Alberta, Manitoba, or Saskatchewan)
- The approximate date when the coverholder will begin transacting business in Canada.
- The names and e-mail addresses of the coverholder’s Principal, Claims manager, Underwriting Manager, and Compliance Officer.
Notes:
It is the responsibility of the coverholder to ensure that any local licensing requirements are met. See Crystal for details.
In order to ensure understanding of Canadian compliance requirements, Lloyd’s Canada is required to conduct a telephone interview with the applicant.
Switzerland
Please read this note before making an application for Switzerland
The categories of intermediary entitled to place Swiss business with Lloyd's underwriters are:
- Lloyd's Swiss brokers approved as (1) either Lloyd's open market correspondents or Lloyd's coverholders and (2) by the Swiss Federal Office of Private Insurance (FOPI) in accordance with the terms of the Swiss Federal Council decision of 31 October 1947.
- Lloyd's brokers
Other categories of intermediary are not permitted to deal with Swiss insureds directly. The Delegated Authorities Team will reject an application from a non-Swiss Lloyd’s coverholder who is not a Lloyd’s broker to deal directly with Swiss insureds.
If the applicant wishes to trade as a wholesaler through Lloyd’s Swiss brokers, the name and the (FOPI) register numbers of all such Lloyd’s Swiss brokers must be identified and attached to the application. The applicant may check who is or is not a Lloyd’s Swiss open market correspondent or Lloyd’s Swiss coverholder (and thus also a Lloyd’s Swiss broker) by searching the corresponding Market Directories or by referring to Lloyd’s Swiss office Swiss Federal Office of Private Insurance (FOPI) www.bpv.admin.ch
Please answer the following questions in the comments box:
- Does the applicant wish to deal direct with Swiss insureds:
- Does the applicant wish to deal with Swiss insureds through other intermediaries:
- Please name all potential intermediaries identified at 2 above.
USA - all States and territories (excluding the US Virgin Islands)
No additional information required.
Note:
A coverholder located outside the US cannot deal directly with US insureds. It may accept business only via US intermediaries who possess the appropriate state licences for the business transacted.
US Virgin Islands
Attach:
- A copy of all licences that are held by the coverholder as an agent or broker in the US Virgin Islands, and of the individuals who are so licensed and who are authorised to act on behalf of the coverholder.
- Copies of policy forms and wordings that will be used. Alternatively, if using standard Lloyd’s Market or ISO forms please state which form(s) and confirm that it/they have not been modified.
- The classes of USVI business the coverholder will handle.
Other licensed territories
No additional information required.
Non-licensed territories
No additional information required.
For further information on how to make these changes see the Atlas User Guide
