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New Coverholder Applications

The full coverholder application process is used when a new legal entity wishes to establish itself as an approved Lloyd's coverholder.

Any company who wishes to bind insurances and/or issue documents on behalf of a Lloyd's underwriter must first be approved to act as a Lloyd's Coverholder. All firms wishing to become an approved Coverholder must complete the application process. Each applicant requires a sponsoring Lloyd's Broker and Managing Agent, who perform their own due diligence of the application before it is submitted to the Lloyd's Delegated Authority Team.

Lloyd’s supervises Coverholders as part of its statutory role in managing and supervising the Lloyd’s market. This is carried out through the application process and then through Lloyd’s on-going supervision of all approved Coverholders.

ATLAS is a secure website which acts as an electronic filing and online application system for all Coverholders.

The sponsoring Broker or direct dealing Managing Agent must start the application on ATLAS. This will generate a unique Coverholder PIN. e.g. (111000ABC).

The Coverholder will need access to the application in order to complete and to sign off that the information is valid. For a Coverholder to get access to ATLAS, a Broker or Managing Agent will need to have started an application on ATLAS. The Coverholder can then fill out the ATLAS user application form which can be found below. Confirmation and instructions will be sent to users once access has been granted.

Coverholder Access to ATLAS Lloyd's service standards: 2 Days

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

Once a new application has been started on ATLAS and the Coverholder has been given access by Lloyd's there are two options. The first is that the Lloyd's Broker may provide the Coverholder with a paper application form which the Broker will enter into ATLAS. The Coverholder will later need to verify and sign this information off online before submitting this information on ATLAS. Alternatively, a combination of the Coverholder and Lloyd's Broker can work on the application filling in the main details and using the expertise of the Lloyd's Broker to complete the forms. Using the save and next button on the Submit/Cancel form will allow both parties to drop in and out of the application.

The Coverholder application is a series of online forms which request the information that is held on ATLAS. All processes on ATLAS, such as the annual compliance, will look to update the information held and build a historical record of the Coverholder. During a new application the forms are blank and all need to be completed.

The sponsoring managing agent and in some cases Lloyd’s, review the information before deciding whether the Coverholder is suitable for approval. This may involve clarifying information and seeking further supporting background information across the relevant sections on the ATLAS application.

Local Lloyd’s country representatives will be involved in the review of the application process and may carry out a visit to the offices of the applicant Coverholder in countries where a Lloyd’s representative is based.

For more information on what we require to assess your application and further guidance, please click on the links below:

The application process is a three stage change task on ATLAS.

Lloyd's Broker - Coverholder - Lloyd's Broker - Managing Agent - Lloyd's:

New applications require input from both the applicant company and the Lloyd's Broker at the initial stage. With this in mind, both parties can log on and edit the information held there.

Once the application is complete on ATLAS, the broker will complete the sponsor's sign off and submit for approval. The status of the task changes to with the Coverholder and the Coverholder will need to log in, complete the Coverholder sign off and approve the application. The application moves to the Lloyd's Broker who then submits the application to the Managing Agent to fully complete their due diligence before they then submit to Lloyd's.

At the stage where the sponsoring managing agent starts their due diligence on the proposed coverholder, they are required to contact the Lloyd’s Country Manager, in the relevant territory where the applicant is domiciled.

Details of the Country Manager contacts can be found on Crystal.

The sponsoring Managing Agent will also need to review the Lloyd’s referral criteria document and assess if the proposed application will require any further touch points within Lloyd’s. The referral criteria and risk code mapping document explains the additional information required. The Lloyd’s Delegated Authorities Team will be able to assist with facilitating any extra referrals required.

Prior to the application being submitted to Lloyd’s via ATLAS, it is important the Country Manager has been contacted and any additional referrals have been completed.

A sponsoring managing agent who meets the relevant expectations under the Principles for Doing Business, will be able to provide a signed attestation to Lloyd’s, confirming the proposed coverholder meets all the necessary requirements to become a Lloyd’s coverholder.

All the above points being completed, once the application is submitted to Lloyd’s with the attestation, the Lloyd’s DA Team will then carry out the formal registration process.

If the sponsoring Managing Agent does not meet the relevant expectations under the Principles for Doing Business, they are required to submit a completed decision paper, with the ATLAS application and Lloyd’s will also carry out an assessment of the proposed coverholder.

Lloyd’s service standard for this review will be 20 working days, from receipt of the completed decision paper and application via ATLAS.

Managing Agents may adopt a risk-based approach to the documentation required to support the application. The documentation submitted on ATLAS should reflect the risk profile of the applicant Coverholder. Documentation / information submitted by the Managing Agent to support the application may include, but is not limited to, the following:

  • Applicant’s business plan/service design
  • Where underwriting authority is to be granted is ‘pre-determined rates’, the rating proposals / limits to be issued to the Coverholder;
  • Prior years’ underwriting results and projected loss ratios;
  • Details of the Managing Agent’s financial analysis;
  • When Coverholder requires claims authority, Prior claims performance data and service standards
  • For High Product Risk (HPR”) applications, the Consumer Product Binding Authority Questionnaire (“CPBQ”) or other evidence of conduct risk due diligence (unless Lloyd’s have confirmed to the managing agent that this is not required);
  • If a pre-bind audit has been conducted, details of any relevant recommendations; and
  • Systems and Controls documents, such as:
    • Financial Crime policies and procedures including Anti-Money Laundering, Anti-Bribery and Corruption and Sanctions (if applicable);
    • Business Continuity Plan (“BCP”) / Disaster Recovery Procedure (“DRP”);
    • Complaints handling process (in detail)
    • Policy and procedure for handling any actual or perceived conflicts of interest (if applicable);
    • Data Protection / Data Privacy policy (where required);
    • IT Security policy / procedure (where required);
    • Conduct Risk policy (if applicable); and
    • Succession planning arrangements.
    • Uploaded Cyber Policy (If Available)


Managing Agent - Coverholder - Managing Agent - Lloyd's:

This is where the Managing Agent will act as the Lloyd’s Broker. New applications require input from both the applicant company and the Managing Agent at the initial stage before following the same chain listed above.

Sponsoring Managing Agents who meets the relevant expectations under the Principles for Doing Business, are no longer required to submit a decision paper. Lloyd’s will rely on the due diligence that Managing Agent has carried out and their overall assessment of that coverholder. Once their due diligence is completed, the application can be submitted to Lloyd’s on Atlas, with a completed attestation. The formal Lloyd’s registration process will then take place.

Open Coverholder Onboarding Attestation

Open LIC Coverholder Onboarding Attestation

Some applications will require additional conversations or reviews by internal Lloyd’s teams. These could be based on regulatory, underwriting, customer outcomes or delegated authority referrals.

The sponsoring managing agent will need to identity these additional referrals and contact the Delegated Authorities Team, who will facilitate these further discussions. This should be before the managing agent completes their due diligence of the applicant and before the application is submitted to Lloyd’s.

Open referral criteria

Open Risk code mappings and descriptions July 2021

Open Underwriting referral document

Only applications where the sponsoring managing agents do not meet the relevant expectations under the Principles of Doing Business, are required to provide a completed and signed Decision Paper, alongside the ATLAS application. The Decision Paper should be completed by the sponsoring Managing Agent, with the guidance notes removed and the Managing Agent's assessment put in its place covering each section.

Full Coverholder Decision Paper With Guidance to Market

Lloyd’s Insurance Company Applications

Lloyd’s Insurance Company SA (“Lloyd's Europe”) is an Insurer authorised and regulated by the NBB and the FSMA, with its Head Office registered in Brussels, Belgium. Lloyd’s Europe as an insurer is a platform to allow Lloyd’s Underwriters continued access to European business following the United Kingdom's withdrawal from the European Union.

All business written via Lloyd’s Europe is 100% reinsured to Lloyd’s Underwriters. The Managing Agent (referred to as Service Provider for Lloyd’s Europe) via outsourcing agreements, performs coverholder onboarding and ongoing oversight activity on behalf of Lloyd’s Europe. While activity is outsourced to the Managing Agent, Lloyd's Europe remains responsible for all activity outsourced to Managing Agents and Coverholders, in the distribution of an insurance contract. As a result, Lloyd’s Europe is required to complete a review of Coverholders that are being sponsored by Managing Agents.

For applications that require business to be written via Lloyd’s Europe. If the sponsoring Managing Agent meets the relevant expectations under the Principles of Doing Business The Managing Agent will be required to contact Lloyd's Europe and the Lloyd’s Country Manager, in the relevant territory where the applicant is domiciled. When contacting Lloyd's Europe and the country manager, the Managing Agent’s due diligence of the coverholder should be at a stage where Lloyd's Europe can review the coverholder’s policies and procedures (in ATLAS) and complete a review of the intermediary and the proposed business. Once, Lloyd's Europe has completed its review, it will provide sign off to the Managing Agent. The Managing Agent, will then be able to provide a signed ‘Lloyd’s Insurance Company Coverholder Onboarding Service Provider Attestation’ to Lloyd’s, confirming the proposed coverholder meets all the necessary requirements to become a Lloyd’s Europe coverholder.

If the sponsoring managing agent does not meet the required maturity level under these principles then the managing agent will need to ensure a completed Lloyd’s Europe Decision Paper is submitted.

Full Coverholder Decision Paper With Guidance to Market - Brexit

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. The undertaking is designed to formalise the high standards demonstrated by and expected of all coverholders at Lloyd's. The coverholder undertaking forms part of Lloyd's delegated underwriting requirements.

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 needs to be wet signed (electronic signatures are not accepted) and uploaded to ATLAS.

Coverholders must sign an undertaking which sets out what Lloyd's expects of them when dealing with customers, clients, brokers, Managing Agents and Lloyd's.

Attaching the Signed Undertaking

To attach a signed copy of the undertaking select Add a Document.
When choosing a title aim for something self explanatory such as 'Coverholder Undertaking' or 'Undertaking Signed 31/12/20XX'.

The undertaking should be un-restricted to all companies involved in this change.

Coverholder Undertaking

Coverholder Undertaking FAQs

New coverholder applications which are domiciled in Canada will need to complete and upload the form below to the coverholder application in ATLAS. For a new full application domiciled outside of Canada but requesting a regional extension to Canada then the Canadian compliance questionnaire for a regional extension needs to be provided.

Download Canada Coverholder Questionnaire with both undertakings

Once approved as a Lloyd's coverholder each entity will receive a letter of notification and be provided with a copy of the Delegated Authorities welcome pack. This outlines information around regulation and Lloyd's licenses, coverholder information, global trading tools, financial crime standards and the use of the Lloyd's brand as an example. More detail is able to be found in the Welcome Pack below.

Coverholder Welcome Pack

Q: I am trying to get access to my PIN number on ATLAS but my Lloyd's broker is telling me that I need to register with a Lloyd's.com account so Lloyd's is able to grant me access to my coverholder record.

A: If you don't have a Lloyd's account and password then you will be required to register using the following link. With this in mind the applicant must request access to ATLAS themselves. The broker or Managing Agent who beings the application must provide the applicant coverholder with their unique PIN before they can be granted access to ATLAS.

https://secure.lloyds.com/Registration

Q: When I try and start a new application on ATLAS the box stating 'New coverholder application (Lloyd's broker or Managing Agent) is greyed out and is unable to be clicked, why is this?

A: New coverholder applications are stated from the Company Search tab which is available to Lloyd's brokers and managing agents. This generates the unique PIN and builds the coverholder record which will hold the details and associated documents which the Managing Agent will use to complete their due diligence as to the suitability of the coverholder to act on their behalf. In order for the grey button to be unlocked you will first need to type in the legal name of the entity, select all coverholders and click search. This is a fail safe aspect of ATLAS which will stop the same legal entity and address being registered twice on ATLAS. Once you have searched for this legal entity any coverholder which matches this name will appear, if the prospective coverholder isn't already listed then you can request to start a 'New coverholder application'

Q: Am I able to submit my application to Lloyd's as a paper copy?

A: All applications must be submitted via ATLAS; we no longer accept paper copies.

Q: All the tabs on the application have been completed and the sponsoring Lloyd's broker has done the initial sign-off of the application and it is now with the coverholder. However the coverholder is looking to amend the information or add further documents to the application but ATLAS isn't enabling this function.

A: Once the application has been initially signed off this will lock out the function to amend the record in anyway other than to add supporting comments. If you wish any of this information to be amended or documentation to be added then the application will need to be returned back to the original source on ATLAS.

Q: I have started the application on ATLAS and the information is nearly complete or the application has now been submitted to the broker or Managing Agent for review, however there has been a change of broker, what do I need to do?

A: If the coverholder is looking to change their broker at any point in the application process, Lloyd's will need to be notified and we will request confirmation from the coverholder that they wish to instruct a new broker. This information needs to be provided either via email or letter to Lloyd's. Once this evidence has been received Lloyd's will amend the broker on the application which will unlock access for them to view the application.