In South Africa, Lloyd’s underwriters can accept risks and issue policies via a service company, a local South African coverholder or open market correspondent (OMC)
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.
South African Coverholders
There are currently 31 coverholders located in South Africa who wrote USD 58m in 2018. Top classes of business are:
Open Market Correspondent (OMC)
An OMC is an insurance intermediary who introduces business to a Lloyd's broker for placement in the Lloyd's market on an open market basis.
For example: South African or non-domicile intermediary's need to be registered/approved as an Open Market Correspondent if they wish to place business through Lloyd's underwriters in London. They must place business with Lloyd's in accordance with all applicable local requirements, they must be fully aware of all the regulations and applicable taxes for placing insurance business, and must undertake to comply with all legal and fiscal obligations per the OMC Undertaking.
Use our market directories to find an accredited Lloyd’s broker, syndicate or coverholder.
You can access Lloyd’s via a local South African coverholder or open market correspondent or by contacting a service company directly.
Please use the market directory on Lloyds.com to search for a local representative by class of business and country.
An intermediary who wishes to become an Open Market Correspondent must obtain the, sponsorship of the Lloyd's broker. An application is then completed by the Lloyd’s broker and submitted to Lloyd’s SA for approval. The application includes a signed OMC undertaking.
As part of the due diligence process which must be conducted by Lloyd’s South Africa, the following information will be required:
- The sponsoring Lloyd's broker and applicant must complete the application form, sign and return to the sponsoring broker.
- Where necessary Lloyd’s South Africa may require further details and will contact the applicant (OMC) and/or the Lloyd's broker directly.
- Lloyd's South Africa will notify the sponsoring Lloyd's broker and OMC once an application has been successful