The underwriting and claim authority for the Coverholder shows the maximum level of authority approved by Lloyd's and may not reflect the authority given as part of a Binding Authority agreement. This task will enable the Coverholder, Lloyd's Broker or direct deal Managing Agent to extend the maximum level of authority a Coverholder is authorised to write.
Lloyd's will set restrictions on what level of underwriting and claims authority can be delegated to the Coverholder. Ultimately, the level of delegation is agreed in the Binding Authority, but this cannot exceed what is permitted by Lloyd's.
If a Coverholder wishes to extend their underwriting authority clicking update authority within the underwriting and claims tab will generate the appropriate task. You be asked if you want to make changes to certain other sections of the Coverholder's ATLAS details. Answering ‘yes’ to any of these questions will add the forms to the change request. This will save creating up to four separate change requests, however all sections will need to be completed before the change can be submitted to Lloyd's.
There are four levels of underwriting authority which a Coverholder is permitted to write depending on their level of authority.
- Full Authority - The Coverholder is given full discretion to set rates or given minimum rates from which the Coverholder has discretion to increase rates without restriction or referral. For applications for full authority Lloyd's would expect a full and considered business case from the Lloyd's lead underwriter.
- Pre-Determined Rates - The Coverholder is given a rating matrix or range within which the rates can be established. The Coverholder has authority to exercise minimum underwriting discretion within agreed parameters, for example within a percentage of the standard premium.
- No Discretion - The Coverholder may only be given underwriting authority via a comprehensive rating matrix. These arrangements must not give discretion in calculating the premium or making adjustments to it, other than minimal rounding up.
- Prior Submit - Each risk must be referred from the Coverholder to the lead underwriter before being bound.
If the Managing Agent is eligible under the Principles of Doing Business, they can provide a signed attestation confirming they have completed their due diligence and are satisfied of the coverholder’s suitability. This can be submitted with the task on ATLAS.