Become a Lloyd’s coverholder

A Coverholder is a company or partnership authorised to enter into a contract of insurance on behalf of a Lloyd’s syndicate in accordance with the terms of a binding authority. Coverholders are Lloyd’s trusted distribution partners around the world. The strength of the partnership lies in the combination of the local business knowledge and strong relationships of the coverholder and the underwriting expertise and financial security of the Lloyd’s market.

Lloyd’s approves and regulates coverholders to ensure they uphold Lloyd’s standards. All firms wishing to become an approved coverholder must complete the application process.

To become a coverholder in Zimbabwe there are a number of requirements firms need to meet including:

• Each applicant requires a sponsoring Lloyd’s broker and/or managing agent. The sponsor will perform their own due diligence of the application before it is submitted to Lloyd’s Delegated Authorities Team for review. You can find a directory of Lloyd’s Brokers online. It makes most sense to talk to a Lloyd’s Broker who deals with the type of business you do.

Existing Insurance legislation in Zimbabwe does not have specific provision for Cover Holders and they are regulated under the section of the Insurance Act 1987 (as amended) that applies to registered Insurance Brokers. This will probably change once the draft Insurance Bill is promulgated into law.