Approval process

Lloyd’s coverholders need to be approved. Approved coverholders may be based anywhere in the world and usually have authority to enter into contracts of insurance, or issue insurance documents as evidence of risks accepted, under what is known as a registered binding authority.

Lloyd’s supervises coverholders as part of its statutory role in managing and supervising the Lloyd’s market. This is carried out through the approval process and then through Lloyd’s ongoing supervision of all approved coverholders.

Lloyd’s wants managing agents to delegate underwriting only to well-managed and financially secure coverholders. This will ensure that policyholders’ interests are properly protected and cement Lloyd’s reputation internationally. The application and approval process depends on the type of delegated authority.

All firms wishing to become an approved coverholder must complete the application process. 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