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 Canada 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.
Open Market Correspondents (OMC)
An OMC is an insurance intermediary who introduces business to a Lloyd's broker for placement in the Lloyd's market on an open market basis.
Canadian or non-domicile intermediary's need to be registered/approved as an Open Market Correspondent if they wish to place non-marine, marine or reinsurance business through Lloyd's underwriters in Canada. They must place business with Lloyd's in accordance with all applicable local requirements, they must be fully aware of all the regulations and applicable taxes for placing insurance such business, and must undertake to comply with all legal and fiscal obligations per the OMC Undertaking.
Process for registering/approving a new OMC:
- Obtain the sponsorship of the Lloyd's broker
- Download the application form and Undertaking
- Sponsoring Lloyd's broker and applicant to complete the application form, sign and return to firstname.lastname@example.org
- Where necessary a General Representative may require further details and will contact the applicant (OMC) and/or the Lloyd's broker directly.
- Lloyd's Canada will notify the sponsoring Lloyd's broker and OMC once an application has been successful