Market guidance and requirements for Delegated Authority
Annual Compliance
Coverholders provide required information to Managing Agents through the annual compliance process.
Audit
Lloyd's is keen to promote both high standards and consistency in the audit of its coverholders.
Binding Authority Wordings
A binding authority is an agreement between a managing agent and a coverholder.
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.
Complaints
It is Lloyd's policy that all complaints should be handled quickly, fairly and in accordance with the requirements of the Financial Conduct Authority. View Lloyd's complaints handling arrangements.
Consortium
A contractual arrangement under which one or more Managing Agents delegate authority to another Managing Agent to enter into contracts of insurance on their behalf.
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.
Financial Crime and Sanctions
The following information provides guidance in relation to financial crime and Lloyd’s expectations of Coverholders in fulfilling their obligations.
General guidance on delegated authority methods of placement
There are various methods and considerations for placing business at Lloyd’s. Please be sure to consider the options and requirements to determine the best path.
Intermediaries Byelaw
This contains the primary rules made by the Council of Lloyd’s regarding delegation of underwriting authority.
Lapsing & Deregistering Coverholders
The process in which Coverholders are assessed in relation to their active binders on a bi-yearly basis.
Line Slips
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.
Lloyd's Brand
To ensure the Lloyd’s brand is used correctly we have produced a set of brand guidelines for approved Coverholders.
Mandate of Lead Security
In June 2024 Lloyd’s released a market bulletin communicating new requirements for policy documentation issued under delegated authority agreements.
Market Oversight
Lloyd’s Oversight Framework creates an efficient and joined-up approach to provide the conditions for the best businesses to thrive and drive decisive interventions for underperforming businesses.
Operational Resilience
Operational Resilience (OR) is a Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) requirement.
Premium and Claims Handling
Information around the handling of premiums and the fair handling of claims for Coverholder business.
Reporting Standards
Coverholders, also known as MGAs, have to report on risks, premiums and claims transacted under their binding authority contracts to Lloyd’s syndicates. This page includes various tools to assist with this reporting.
Retrospective endorsement guidance
Retrospective endorsements are endorsements where the date inserted for when the endorsement takes effect is prior to the date that there is full and final agreement of the terms, as evidenced by all the parties signing the endorsement.
Third Party Material Issues
Managing agents are required to notify Lloyd’s of any issue that arises in relation to a managing agent’s delegation of underwriting or claims handling authority to a third party.
Validation of binding authority via Letter of Authority
Lloyd’s have collaborated with the LMA to produce a template that can be utilized by the market, where confirmation that a specific binding authority is in place, is required.