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Global contracts guidance

Information about global contracts and how to place them at Lloyd's.

Regulatory Information

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What is a global insurance contract?

A global insurance contract covers risks located in more than one country. This could be part of a multinational programme as well as other scenarios. Examples include:

  • Covering immovable property (such as buildings), situated in more than one country.
  • Where there is more than one (re)insured and the (re)insureds are situated in more than one country (e.g. an insured defined as a named company 'and subsidiary and associated companies'.)
  • Covering fleets of aircraft or ships, where the aircraft or ships are registered in different countries, and registration determines the legal location of the risks.

International fiscal and regulatory obligations arise in territories where risks or (re)insureds are situated.

The international insurance laws and regulations permitting or prohibiting insurance transactions vary in their application and impact on the insurer, insurance intermediaries and (re)insureds.

Legal repercussions may arise for each of the contracted parties where coverage is placed with a non-admitted insurer breaching local insurance laws and regulations.

For multinational business we have developed a Multinational Playbook to support market participants to use Lloyd’s. 

Rules on risk location differ by territory and can give rise to conflicting obligations. Lloyd’s Risk Locator tool offers guidance on how to determine the location of a risk and how to handle a global contract.

Requirements for contractual evidence validating proof of cover can mean the issuance of multiple-policy documents where risks are located in more than one territory. Care should be taken to ensure a contract does not have any exposure where international sanctions apply, prohibiting or limiting insurance transactions.

Risk Locator tool

This section provides information on territories where separate London Premium Advice Notes (LPANs) are required for both direct and reinsurance multinational contracts. Please see Appendices A and B for further information, which includes details of those territorial changes since Market Bulletin Y5361 relating to Brazil, China, Colombia, Cyprus, France (Overseas Community), Gibraltar and Singapore. Lloyd’s parafiscal and regulatory obligations can of course change, and Lloyd’s will continue to update its guidance as new requirements arise.

What are multinational contracts?

A multinational contract is a multi-jurisdictional policy designed to provide coverage for a policyholder’s worldwide exposures. To be compliant, the insured and insurer must adhere to the laws, regulations, and tax obligations in all territories where there is a risk location.  The Risk Locator Tool houses thousands of risk location rules and can be used by Lloyd’s market participants to determine the risk location(s) under a multinational contract. If the regulatory rules of more than one territory apply with contradictory effect, a common-sense approach is necessary, and the underwriter should ensure arrangements provide appropriate protection to the insured.

Premium allocation

When allocating premium to the relevant territories under a multinational contract, the underwriter, with input from the broker, should apportion premium as appropriate to the territory concerned. Allocating premium ensures that business is correctly reported to regulatory authorities and taxes and other fiscal charges are paid correctly.

A common-sense approach to premium and apportionment should be adopted.  Determining premium is in principle a commercial judgement. Consequently, if an underwriter decides not to consider a minor exposure in a particular territory, as to do so would not be economic, it is reasonable that no premium is allocated to that country.  However, the underwriter must be able to justify why they have not charged a premium for a particular risk.

It is important that the apportionment methodology used to allocate premium can be evidenced as the regulators and tax authorities may request to see it and potentially question the method used.

It should be noted that in the case of multinational reinsurance contracts, if a cedant is specifically named on the contract then premium must be allocated to that cedant if they are in a territory listed [under Appendix B.

What is an LPAN?

Premiums are usually settled to underwriters via Lloyd’s central accounting. To create accounting entries, the slip and a London Premium Advice Note (LPAN) must be submitted to DXC for signing and processing. An LPAN is produced by the broker and contains all details relating to a premium transaction. Upon signing the premium, DXC will allocate an appropriate foreign insurance legislation (FIL) code taking into consideration the tax and regulatory category.

 DXC has provided guidelines relating to the completion of the LPAN. 

Taxes and parafiscal charges under a multinational contract

A multinational contract may give rise to tax exposures in several different jurisdictions.  Compliance with tax requirements will normally require the premium to be apportioned between jurisdictions and may result in more than one country’s tax being applied to the same premium. In addition, tax liabilities may be triggered by several factors beyond the location of a risk, including, residence of insured, route of the business into Lloyd’s and Lloyd’s status in each jurisdiction. A contract may also be subject to parafiscal charges to levy money for a particular purpose. The money raised is usually paid to a body other than a national tax authority.

Furthermore, multinational contracts, covering relevant risk locations, are subject to Lloyd’s prudential reporting and trust fund/deposit obligations under its licenses worldwide. Lloyd’s seeks to ensure that underwriters can accept risks in compliance with the prudential requirements applicable to Lloyd’s business model in those territories.

LPAN requirements for direct multinational contracts [1]

A direct multinational contract is an insurance contract that covers risks situated in more than one territory. This may arise if, in the case of direct business:
• There is more than one insured on the policy, and those insureds are located in more than one territory; or
• The policy covers property at more than one location, and those locations are in more than one territory; or
• The policy covers more than one aircraft, ship, boat, or vessel and the insured items are not all registered in the same territory, if registration is used to determine the legal location of the risk.

Those territories for which separate LPANs are required for direct multinational contracts are detailed in Appendix A.

For further information on identifying regulatory and tax risk locations, please refer to Market Bulletin Y5325.

DXC has been advised that it only needs to query the failure to split out risks into separate LPANs from countries that appear on the lists attached at Appendices A and B. DXC has been advised to begin querying for the correct splits on the new territories mentioned within Appendices A and B from 1 March 2023.

LPAN requirements for multinational reinsurance contracts [2]

A multinational reinsurance contract is a reinsurance contract that covers insurance companies/cedants located in more than one territory.

Those territories for which separate LPANs are required for multinational reinsurance contracts are detailed in Appendix B.

US Risks

Appendices A and B permit the grouping of US premium as per the footnotes; however, such grouping is not mandatory.  A Lloyd’s broker can continue to submit multiple LPANs in respect of US risk locations.

NAIC Codes  

Lloyd’s underwriters and brokers are reminded that any LPAN reinsurance premium allocation to the US must be supported by the NAIC company code of the ceding US reinsured.  If the contract reinsures more than one ceding US insurer, the NAIC code of each US cedant must be included.  If the cedant does not have a NAIC code, its Federal Employment Identification Number (FEIN) may be stated instead.  This information permits Lloyd’s to complete important regulatory filing schedules, allowing completion of regulatory filings in accordance with Lloyd’s accredited/trusteed reinsurer status in the US. A list of NAIC codes can be found on the NAIC’s publications webpage (please search for "Quarterly Listing of Alien Insurers").

If you have any queries  relating to LPANs, please contact:

Lloyd’s International Trading Advice (LITA)
t: +44 (0)20 7327 6677

Appendix A – LPAN requirements for direct multinational contracts

Antigua & Barbuda

France – COMs[3]






Gibraltar [4]




San Marino



Singapore [5]


Hong Kong







South Africa






St. Kitts & Nevis



St. Lucia

Cayman Islands


St. Vincent & Grenadines









Trinidad & Tobago

Czech Republic








US – Virgin Islands licensed – prior to 01/01/2022



US – Illinois licensed – prior to 01/01/2022



US – Kentucky licensed – prior to 01/01/2022

France – Metropolitan


US – Other[9]

France – DROMs[10]

New Zealand


France – CTUs[11]




Appendix B – LPAN requirements for multinational reinsurance contracts


Antigua & Barbuda







New Zealand




South Africa




St Kitts & Nevis


St Lucia

Cayman Islands

St Vincent & Grenadines


Trinidad & Tobago







Hong Kong







[1] Multinational contracts which include both direct and reinsurance risks will need to provide separate LPANs in accordance with Appendix A for the direct risks and Appendix B for the reinsurance risks.

[2] See footnote 1 above.

[3] French Overseas Community (Collectivie d’Outre-Mer, COMs) = Saint Martin, Saint Barthelemy and French Polynesia.  Please note that Wallis & Futuna and St. Pierre et Miquelon are also classified as COMs, but there is no separate LPAN requirement.  Lloyd’s Europe (LIC) is not authorized to write business from:  French Polynesia, Wallis & Futuna, and St. Pierre et Miquelon.  The French Southern & Antarctic Lands (Terres Australes et Antartiques) incl Kerguelen Islands and New Caledonia are territories with a special status, as a result do not require a separate LPAN. For further information in relation to French COMs please refer to Crystal.

[4] New addition – to support Lloyd’s regulatory reporting obligations.

[5] Separate LPANs are no longer required for premium relating to business where the situs of the policy is Singapore, and it has not been written via the Lloyd’s Asia platform and is signed on or after 1 October 2022.

[6] New addition – only in respect of direct marine, aviation, and transport business from Colombia.  Please note: whilst a new addition to this Appendix, DXC currently query for the correct splits.

[7] Only in respect of business that meets the requirements of the Japan Open Market Model.

[8] US includes all US surplus lines business from the 50 US states, one district (the District of Colombia) and the US Virgin Islands.

[9] US Other includes all US surplus lines business from the dependent territories as set out within the US definition on Crystal.

10] DROMs = Guadeloupe and La Reunion. For further information in relation to French DROMs please refer to Crystal.

[11]CTUs = French Guiana (la Guyane), Martinique and Mayotte. For further information in relation to French CTUs please refer to Crystal.

[12]Only in respect of business that meets the requirements of the Japan Open Market Model.

[13]Separate LPANs are no longer required for premium relating to business where the situs of the policy is Singapore, and it has not been written via the Lloyd’s Asia platform and is signed on or after 1 October 2022.

[14] Removed. Due to Lloyd’s change in status in Brazil to Occasional Reinsurer there is no longer a need to continue to separately identify Brazil reinsurance risks.

[15] New addition – to support the ongoing cross-border reinsurance registration process.

[16] New addition – to support Lloyd’s tax reporting.

[17]Please see Crystal for the definition of the United States.



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Global trading information


For country specific trading information Lloyd's market participants can access Crystal or contact:

Lloyd’s International Trading Advice

+ 44 (0)20 7327 6677