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 |