Colombia: Offshore coverholder notification requirement
Lloyd’s coverholders are permitted to write Colombian reinsurance business across borders under Lloyd's foreign reinsurance licence.
From 2 November 2018 the Colombian Regulator (Superintendencia Financiera de Colombia, SFC) will retain a list of all the coverholders operating under the authority of reinsurers listed in the Registry of Foreign Reinsurance Entities and Reinsurance Brokers (REACOEX).
The requirement, outlined in SFC External Circular No. 020/2018, states that the registered foreign reinsurer (Lloyd's underwriters) must notify the SFC of their intention to appoint a coverholder, identifying key details of their Binding Authority Agreement (BAA) including business name, location and scope of authority.
Notification Process
To initiate the process, Lloyd's coverholders based outside of Colombia that intend to transact Colombian reinsurance business across borders are required to contact Lloyd's Representative Office in Colombia (email to: colcoverholders@lloyds.com) with the following information:
- name
- location
- supporting syndicates numbers and names,
- lines of business and type of cover
- limits of subscription (territorial or total exposure limits)
- period of validity of the binding authority
- copy of the binding authority
- UMR
- details of a point of contact who will be engaged throughout the notification process.
To ensure continuous compliance with the notification requirement, coverholders must notify Lloyd's Colombia of any changes to the binding authority, including any modifications to the agreement, renewal or cancellation. This notification should be issued as quickly as possible and must not exceed 14 calendar days after the changes have come into effect.
Frequently asked questions
- name
- location
- supporting syndicates numbers and names
- lines of business and type of cover
- limits of subscription (territorial or total exposure limits)
- period of validity of the binding authority
- copy of the binding authority
- UMR
- details of a point of contact who will be engaged throughout the notification process
No
An offshore coverholder operating under Lloyd's underwriters' REACOEX registration can bind Colombian reinsurance businesses across borders in line with Lloyd's trading rights once the notification has been submitted to the regulator. Written confirmation will be provided by Lloyd's as soon as the notification process has been completed.
Lloyd's Colombia will undertake the notification process on behalf of coverholders, acting as their sole point of contact with the regulator and holding all the relevant documentation related to the notification. Once the notification has been issued to the regulator, Lloyd's Colombia will send a confirmation email to the coverholder.
To ensure continuous compliance with the notification requirement, coverholders must notify Lloyd's Colombia of any changes to the binding authority, including any modifications to the agreement, renewal or cancellation. This notification should be issued as quickly as possible and must not exceed 14 calendar days after the changes have come into effect.
Cedants must be able to verify the powers allocated to the intermediaries with whom they do business. Operating under a different name to the one used in the submission to the SFC may limit the cendants' ability to verify the coverholders' authority to underwrite reinsurance business from Colombia.
Lloyd's Regulatory Communications provide the Lloyd's Market with relevant information on UK and international regulatory changes, regulatory news articles, consultation papers, market bulletins, regulatory briefings and a risk location tool.
Crystal, Lloyd's Trading Advice Tool, provides market participants with quick and easy access to international regulatory and taxation requirements. If you have any questions on the content published on Crystal, please contact@
Lloyd's International Trading Advice (LITA)