The Managing Agent must meet with Delegated Authority (DA) team to discuss the proposed Service Company application. They will also need to review the Lloyd’s referral criteria document and assess if this proposed application will require any further touch points within Lloyd’s. The Lloyd’s Delegated Authorities Team will be able to assist with facilitating any extra referrals required. The Country Manager will also be involved in these discussions.
On preliminary approval by DA to proceed, the application will be completed on ATLAS. This is required to be started by Lloyd’s DAT who will conduct this process after the closure of the introductory meeting. This is subject to a legal name being established and the main point of contact being identified for the Service Company.
Prospective Service Companies must comply with Lloyd’s requirements outlined with the thematic review.
The undertaking must be provided by the Service Company under the terms of paragraph 15 (b) of the Intermediaries Byelaw. Words and terms in bold type in this document have the meanings given in the Definitions Byelaw (which includes the definition of a “Service Company coverholder”) Every application requires a Service Company Coverholder Undertaking to be reviewed, signed, and uploaded onto the ATLAS application form.
Once any referrals have been reviewed and approved, the Atlas application can be formally submitted to Lloyd’s for processing.
A managing agent who meets the required 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 service company coverholder.
Lloyd’s will then process the application alongside the attestation.
If the sponsoring managing agent does not meet the required maturity level under the Principles for Doing Business; they are required to submit a fully completed service company decision paper, with the Atlas application and Lloyd’s will carry out an assessment of this service company coverholder
Once the Service Company application has been processed by Lloyd’s and any other Lloyd’s Teams, they be able to enter into a Service Company Underwriting Agreement. This is a binding authority which authorises a Service Company coverholder to enter into a contract or contracts of insurance only to be underwritten by members of a syndicate managed by the Service Company coverholder’s associated Managing Agent (and, where applicable, by its associated insurance company).
Any further changes to the Service Company record once the entity has been approved will need to be submitted to Lloyd’s through ATLAS e.g. if the Service Company is looking to write an additional line of business then the Managing Agent will need to submit a class of business extension and accompanying checklist.
Each managing agent is required to sign-off on the control framework phase 1. Find out more about the control framework.