Market Knowledge for Delegated Authority
Conduct Risk
Conduct risk has become an increasingly important topic in the insurance industry recently and is of particular importance where authority is delegated to a third party.
Binding Authority Wordings
A binding authority is an agreement between a managing agent and a coverholder.
Minimum Standards
The minimum standards are statements of business conduct which managing agents are expected to comply with to operate at Lloyd’s.
Consortium
A consortium is a contractual arrangement under which one or more Managing Agents delegate authority under the terms of a binding authority agreement to another Managing Agent (the Consortium Leader) to enter into contracts of insurance on their behalf.
Line Slips
A line slip is an agreement by which a Managing Agent delegates its authority to enter into contracts of insurance to be underwritten by the members of a syndicate managed by it to another Managing Agent or authorised insurance company in respect of business introduced by a Lloyd’s Broker named in the agreement.
Code of Practice
The Code provides an introduction to delegated underwriting in the Lloyd’s market and sets out Lloyd’s expectations of managing agents when delegating underwriting authority to a coverholder (under a binding authority agreement) or another managing agent (under a line slip or consortium arrangement).
Intermediaries Byelaw
This contains the primary rules made by the Council of Lloyd’s regarding delegation of underwriting authority.
Continuous contracts
Lloyd’s permitting continuous binding authority contracts is a key component to a long-term shift in placing binding authority contracts through our platform.