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Customer Oversight Referrals

Fair Value Referrals

Information on fair value referrals can be found on the fair value page.


Master and Group Policies

Information on applying for an exemption from Lloyd’s master/group Policy Level Requirements can be found on the Master and Group Policies page.


Removal of Underwriting Authority from a Coverholder on Short Notice

Typically, binding authorities provide for notice periods of three months, or longer, if the parties wish to bring the binding authority to an early close. This notice period is important as it allows the coverholder to continue to offer cover to policyholders and maintain continuity while it seeks replacement capacity.

In exceptional circumstances a managing agent may need to require that a coverholder ceases underwriting immediately or on short notice either by removing their underwriting authority or terminating the binder entirely. Any circumstance where underwriting authority is withdrawn without use of the full notice period set out in the binder is considered to be a removal of underwriting authority on short notice. This includes changing the level of authority granted to the coverholder to ‘prior submit’.

Short notice removal of underwriting authority can negatively impact both policyholders who may not be able to obtain renewal terms or have their existing policy serviced and coverholders who may not have the opportunity to find replacement capacity. If not properly justified it can also have a negative reputational impact on Lloyd’s and may draw regulatory investigation. Managing agents should therefore only take steps to remove a coverholder’s authority on short notice where it is able to demonstrate good reason for taking such action.

To monitor the use of short notice removal of underwriting authority the following requirement is in place:

Prior to a managing agent taking any steps that would have the effect of substantially terminating the underwriting authority of a coverholder at a date earlier than provided for in the binding authority (either the natural expiry of the binding authority or the end of a notice period) then the managing agent must first refer the proposal to Lloyd’s. This includes any proposal to terminate for breach or to reduce underwriting authority to ‘prior submit’.

The referral process is as follows:

  1. The managing agent should complete the referral form which can be found below.
  2. The managing agent should submit the form by email to the mailbox listed below. If an urgent or immediate decision is required the managing agent should additionally contact by email or telephone their Customer Oversight Manager and/or a member of the delegated authorities team.
  3. Lloyd’s will seek to engage with the managing agent promptly and provide an early decision. If the managing agent does not receive any response from Lloyd’s within five working days the managing agent may proceed as it sees appropriate.