Generally Lloyd's underwriters do not deal directly with policyholders. Instead, business is accepted by Lloyd's underwriters through the following entities:
Insurance business is generally brought to Lloyd's by Lloyd's brokers, which are insurance broking firms accredited by Lloyd's to place insurance business at Lloyd's.
Insurance business also may be placed at Lloyd’s directly by non-Lloyd’s brokers. It is for the managing agent to check that the non-Lloyd’s broker meets the minimum standards. Also, a TOBA must be entered into. Non-Lloyd’s brokers may also place business at Lloyd’s through Lloyd’s brokers.
Spanish exclusive and tied insurance agents, duly licensed by the Spanish Regulator (the DGSFP), may enter into agency agreements with Lloyd’s managing agents. It is for the managing agent to check that the Spanish insurance agent meets the minimum standards. Also, a TOBA must be entered into.
A service company operates like a coverholder but is a wholly owned subsidiary of a managing agent or its group. Unlike a coverholder, a service company is able to sub-delegate underwriting authority to other coverholders.
Lloyd's underwriters may delegate their authority to enter into contracts of insurance to 'coverholders' or 'underwriting agencies'. In such circumstances the general principle is that the coverholder acts as agent of the Lloyd's underwriters (rather than as agent of the policyholder). Please be advised that the coverholders regulation in Spain is different from other European countries. For additional information, please contact Lloyd’s Iberia.