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Licensing considerations and risk location

Risk locations

To support a compliant approach when writing multinational business, it is important to determine the correct risk location(s) that apply to enable the appropriate policy construction and application of relevant clauses to the contract.

Risk location(s) determine the territory or territories whose laws, regulations and tax rules apply to an insurance contract. 

Risk locator tool

The Risk Locator Tool was built for Lloyd's market participants and contains thousands of risk location rules and triggers with the aim to assist in determining risk location(s). The general principles set out in the Risk Locator Tool and guidance provided on this page should be used in conjunction with country specific information on Crystal.

Risk location guidance

Lloyd’s provides risk location guidance on how to determine risk location and has created some examples for a selection of classes of business to demonstrate how these work in practice. The Risk Locator Tool enables market participants to define both a regulatory and tax risk location.

These risk location examples focus on Open Market business through a Lloyd’s broker. We issued Market Bulletin Y5325 - Identifying regulatory and tax risk location(s) in February 2021 which also provides more guidance and more specific class of business guidance.

Once risk locations have been determined using the Risk Locator Tool and Crystal, market participants should then check detailed Crystal content to understand Lloyd's trading rights and any processes to bind cover for the required territories.



Use the Risk Locator Tool to identify potential risk locations


Use Crystal to confirm the regulatory risk locations using the ‘Definition of risk location’ for each territory


Use Crystal to check Lloyd's authorisation in the territory or territories identified

Where regulatory risk locations are created in the European Economic Area (EEA), use the Stamp Decision Tool to determine whether a policy should be underwritten by Lloyd’s underwriters and/or Lloyd’s Europe.


Review the regulatory and tax requirements for the relevant territory or territories in Crystal