Captive syndicate

• Licensing access leads to potential cost efficiency: All syndicates at Lloyd’s, including Captive syndicates, can use Lloyd’s international underwriting permissions, including the ability to underwrite direct insurance in 80 countries, and to use fronting partners where Lloyd’s does not have insurance permissions. A Captive with a significant volume of business in multiple territories where Lloyd’s has permission to underwrite insurance can find this a more cost-effective model.
• Control and consistency: The potential absence of fronting arrangements provides the Captive with the ability to set and control their own risk appetites, retentions and wording, with the support of their managing agent, and the oversight of Lloyd’s.
• Capital: Captive syndicates share the financial strength rating of the Lloyd’s market. This can result in lower collateral requirements where fronting arrangements are necessary.

Lloyd’s has established overarching criteria for the assessment of all new entrants; these criteria are provided for by the Underwriting Byelaw and are set out in full in the requirements made pursuant to the Underwriting Byelaw.

More broadly, Lloyd’s will also consider the extent to which the applicant’s proposed business adds value to the Lloyd’s market having regard to:

• the nature and robustness of the business plan of the syndicate;
• whether the applicant is a competent, proficient and capable organisation;
• whether the applicant is of appropriate reputation and standing;
• whether the applicant has adequate capital and financial resources;
• whether the applicant is able to meet Lloyd’s Principles framework where applicable; and
• the applicant’s support for ‘Future at Lloyd’s’ and other market wide initiatives.

• Lloyd’s Captive syndicate application fee is £100,000 (VAT is not payable).
• The application fee invoice will be issued once the application has been recommended to the Council by the Business Opportunities Committee.
• Please note the application fee is non-refundable.
• Further information on charges payable by members to operate in the Lloyd’s market can be found in the Triage Quantitative Submission.
• We review our charges annually and every September we release a Market Bulletin confirming the charges for the following year.