The Coverholder application 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 supervision is carried out through the approval process and then through Lloyd’s ongoing supervision of all approved coverholders. 

Lloyd’s wants Lloyd’s managing agents to delegate underwriting only to well-managed and financially secure coverholders.  This will make sure that policyholders’ interests are properly protected and will also protect and further improve Lloyd’s reputation in the local territory in overseas jurisdictions.

• What is the Lloyd's application process?

  The applicant and their sponsoring Lloyd's broker must complete an application via Atlas.

  
  The managing agent reviews the information supplied and when they are satisfied all parties sign-off and submit the application to the Lloyd’s Delegated Authorities Team (DAT). The DAT reviews the information thoroughly, before making their decision as to whether the coverholder is suitable to be approved by Lloyd's. This usually involves clarifying information and seeking further supporting background information where queries arise.

  Local Lloyd’s country representatives, known as Country Managers, are usually involved in the review of the application process and may also carry out a visit to the offices of the applicant coverholder.

• Application form and guidance notes

  The following are for guidance only. We do not accept paper applications, only applications via Atlas.

  Application form to become a Lloyd's approved Coverholder (434KB pdf) 
  
  Application Guidance Notes (80KB)

• The coverholder branch application process

  The branch application process is used where the applicant has another office of the same legal entity which has already received approval as a Lloyd's coverholder. 

  A branch application can only be submitted where the legal entity is identical to an existing approved coverholder. This does not include subsidiary companies and or sister companies within the same group.

  If the application is for an entity in the same group but with a different legal name, a full application must be submitted.
  

  Application form for a Coverholder Branch Application (649KB) 

• Submitting an application

  The sponsoring broker or direct-dealing managing agent must start the application on Atlas. This will generate a coverholder PIN.

  The coverholder will then need to set up a Lloyds.com account and apply for access to Atlas.

  Every employee that requires access to Atlas must have a Lloyds.com account and have read and agreed to the Atlas Terms and Conditions.

  Confirmation and instructions will be sent to users once we have granted access.

• The Coverholder Undertaking to Lloyd's

  Lloyd's requires all coverholders to sign an undertaking, which reflects the coverholder's relationship with Lloyd's. The undertaking sets out, in clear terms, what Lloyd's expects of coverholders when they deal with their customers, clients, Lloyd's brokers, managing agents and Lloyd's.  
  
  By signing the undertaking, the applicant agrees to act in line with the terms of its binding authority and any local requirements of the territory in which it is based or in which it will trade, provide services or do business. The applicant also agrees to certain conditions that would apply if Lloyd’s withdrew its approval or otherwise stopped it from accepting business under a binding authority. The undertaking also requires the coverholder to comply with the guidance Lloyd's issues on using the Lloyd's name;

  Lloyd's brand guidelines

  The undertaking will need to be signed (electronic signatures will not be accepted) and uploaded to the Atlas application on the 'Undertaking' tab.
  
  Coverholder Undertaking (92KB, doc) 

  Coverholder undertaking questions and answers (Q&As)

  This document covers questions about the undertaking.

  Coverholder undertaking Q&As (38KB, pdf)

• Reporting standards

  Coverholders will typically report on risks, premiums and claims on monthly bordereaux to the Lloyd’s syndicates with whom they have a binding authority contract.

  Lloyd’s is making it easier for coverholders to do business with the Lloyd’s market by introducing a series of standards for information reporting.

  Reporting Standards

• Financial Crime - Anti Money Laundering and International Sanctions guidance for Coverholders

  The following provides general guidance in relation to Financial Crime compliance and Lloyd’s expectations of Coverholders in fulfilling their obligations.

  Anti Money Laundering and International Sanctions guidance for Coverholders

  UK: Bribery Act impact on managing agents and coverholders