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Underwriting and Claims

This section shows the level of delegation at the Coverholder and if they have authority to handle claims.

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 extended 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.

Underwriting Authority:

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. 

Issuing Documents:

Companies need to be an approved Lloyd's Coverholder if they wish to issue documents on behalf of Lloyd's underwriters. If this occurs at a different location to where the risks are being bound then that location needs to be approved in its own right and named on the Binding Authority. 


As part of the original application process there is a requirement to provide the name of the entity who will be handling claims. This may be the Coverholder, the Managing Agent or a third party administrator. Approved Coverholders can settle claims on behalf of Lloyd's underwriters as agreed in the Binding Authority provided they are approved for claims handling authority on ATLAS. If a Coverholder wishes to extend their authority to handle claims then selecting yes to "Is the applicant Coverholder applying for claims authority on behalf of the Managing Agent?" will auto-generate the following questions. 

  1. Is there segregation of duties / authority between your underwriting and claims departments?
  2. If you have answered 'No' to 1. please explain why (within free text box):
  3. Has the applicant ever had claims authority under a Binding Authority agreement cancelled by underwriters?
  4. If you have answered 'Yes' to 3. please explain why (within free text box):
  5. Please describe your applicant's internal audit and peer review processes to ensure compliance with the terms and conditions of the Binding Authority in respect of claims handling?
  6. Please summarise the internal claims authority limits that will apply to persons authorised to handle claims, including authority to agree final settlement of claims?

Further to the above points listed on ATLAS the following questions need to be satisfied within the comments sections within the task. 

  1. Do you have documented claims procedures which include instructions relating to service levels, procurement of third party experts, claims in excess of authorities, and diary systems? 
  2. If you are applying for claims authority, does your underwriting system produce bordereaux for paid claims, outstanding claims and claims expenses? 
  3. If you are applying for claims authority, does your underwriting system monitor compliance with claims handling limits delegated to you under binding authorities? 
  4. How do you ensure that you comply with the requirements relating to claims handling and the retention of claims records in the jurisdictions in which you trade, provide services or do business?
  5. Please enter the name and address of any potential TPAs to be used for handling claims, and state who will be responsible for appointing them?

Documents can be attached to support the information required on this page.

This section can be updated by the Coverholder, Lloyd's Broker or direct deal Managing Agent but a rationale must also be provided by the lead Managing Agent.

The task is a two stage change task. This means that two stakeholders, in this case the Managing Agent and Lloyd's are required to authorise the change and the information on the ATLAS database once the Coverholder, Lloyd's registered Broker or direct-dealing Managing Agent has created and submitted the task. The information will be immediately viewable under the details tab once approved.

Lloyd's service standard: 5 Working Days (Claims Authority), 10 Working Days (Underwriting Extension).

Q: I am trying to reduce the coverholder level of authority on ATLAS and or remove them from handling claims authority however ATLAS is only letting me increase the authority level which I create a underwriting and claims task.

A: Please note that when updating the level of authority you will not be able to request that the existing approved level of authority is decreased. If a request to decrease authority is ever required please contact Lloyd's Delegated Authorities Team directly on 02073276275 or email