A high-level comparison of the options available for participating in the Lloyd’s market.
Participating options
Entry process
| Requirements | Captive syndicate | Syndicate in a box | Syndicate | Special Purpose Arrangement |
| Fees | £100k | £100k | £200k | £75k |
| Application duration | 3 months | 3 months | 6-8 months | 2-3 months |
Transparent set of qualifying criteria
| Requirements | Captive syndicate | Syndicate in a box | Syndicate | Special Purpose Arrangement |
| Accretive to what the Lloyd’s market offers today | ✓ | ✓ | ✓ | ✓ |
| Expense ratio | <35% by year three | <35% by year three | Expectation to be lower than market average by year three | Expectation to be lower than market average in year one |
| Innovative | ✓ | |||
| GWP <£100m in year 1 | ✓ | ✓ | ||
| Box space permitted | ✓ | |||
| Limited peak perils* (LCM5) exposure | ✓ | ✓ | ||
| Short tail | ✓ | |||
| Policyholder | First & related third party | Any | Any | Any |
Capital setting
| Requirements | Captive syndicate | Syndicate in a box | Syndicate | Special Purpose Arrangement |
| Internal model required | Yes - for year 4 | Yes - for year 5 | Yes - for year 4 | Yes - for year 4 |
| Enhanced Central Fund contributions (New members) | Yes - for years 1-3 (dependent on Central Fund exposure) | Yes - but deferred until years 4-6 | Yes - for years 1-3 | Yes - for years 1-3 |
| Operational load | ✓ | ✓ | ✓ | ✓ |
Oversight
| Requirements | Captive syndicate | Syndicate in a box | Syndicate | Special Purpose Arrangement |
| Flexible line size dispensations | ✓ | ✓ | ||
| Optimised reporting | Yes - if <£50m GWP | ✓ | ||
| Streamlined business plan submission | ✓ | ✓ |
Annual review lifecycle
| Requirements | Captive syndicate | Syndicate in a box | Syndicate | SPA |
| Timebound and with run off plans | ✓ - 3 years |