Managing agent

Every syndicate must be managed by a managing agent. The most common reason for establishing your own managing agent is for the managing agent to take over the management of an existing syndicate that is currently managed by a third-party managing agent.

It is possible to establish a managing agent and syndicate at the same time, however applicants need to be aware of the potential difference in the time taken for syndicate application (four to six months) compared to the managing agent application, which could be materially longer. Operating and providing the resources required for a managing agent also requires a greater level of expertise and resource. Therefore, most new businesses at Lloyd’s will initially appoint an existing managing agent to manage their syndicates until such time as they have a more stablished business and have built up the necessary market knowledge and expertise.

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.

Lloyd’s will assess each application with regard to:

• the extent to which the applicant’s proposed business adds value to the Lloyd’s market;
• 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;
• the applicant’s support for ‘Future at Lloyd’s’ and other market wide initiatives.

• Lloyd’s application fee is £300,000 (VAT is not applicable).
• 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.
• There are no charges levied by Lloyd’s on managing agents, other Lloyd’s charges are levied against the members of the managed syndicates.
• We review our fees and charges annually and every September we release a Market Bulletin confirming the charges for the following year.