To this end, Chapter 34.2 of CUSF, implementing Article 107 of LISF, states that the reinsurer (Lloyd’s) must notify the CNSF of their intention to appoint a coverholder, submitting a request which must include the following information:

  • scope of the authority granted,
  • period of validity of the binding authority agreement,
  • territorial scope,
  • type of risks and operations covered, and
  • Limitations of liability.

Following the submission, the coverholder will be allowed to underwrite Mexican business on behalf of the concerned reinsurer. The CNSF has 20 days from the date of receipt of the original submission to provide a response requesting additional information or clarification of the information provided, and an additional 180 days from the date of the full submission to process its final response to the application.

To initiate the process, Lloyd’s coverholders based outside of Mexico who intend to transact Mexican business are required to contact Lloyd’s Representative Office in Mexico requesting to be registered with the CNSF and including a copy of their binding authority agreement, if available, in Spanish as well as English. The request must include the details of a point of contact who will be subsequently contacted throughout the process of registration.

Registration Process

  1. Send an email to mxcoverholders@lloyds.com with the following information: - Copy of your binder in English and if you have a Spanish version please send it as well.
    - Answer the questions below with the type of risks and operations in Spanish:
    ___________________as a coverholder for syndicate (managing agent) ______
    Alcance de sus facultades/ Scope of authority granted (Mexico, Reinsurance)
    o Vigencia/Period
    o Territorialidad/ Territory
    o Tipo de riesgos u operaciones/ Type of risk and operations
    o Límites de responsabilidad/ Limitations and liability- USD
  2. A confirmation email will be sent to you verifying all the information is correct. Once it is accurate it will be submitted to the CNSF and you will be provided with a copy of the letter. Once the CNSF has been notified, you are allowed to bind Mexican business.
  3. The CNSF will take 6 months period since the submission of the letter to inform our Office they have been notified about your registration. Once we get this letter we will provide you with a copy.

CNSF websIte

Frequently asked questions

From 2016, foreign coverholders writing Mexican business have to register with the regulator. This briefing aims to provide guidance and address commonly asked questions on the process of registration.

  • Is registration mandatory for coverholders in Mexico?

    Yes. Coverholders (locally known as ‘suscriptores facultados’) underwriting Mexican business from abroad must register with the Mexican regulator, the Comisión Nacional de Seguros y Fianzas (CNSF). The requirements are outlined in the Mexican Insurance and Bond Circular (Circular Única de Seguros y de Fianzas, CUSF) and additional information is provided throughout the website of the CNSF.

    Please see Market Bulletin Y5073: Coverholder registration requirements in Mexico for further information.

  • Is there a website where I can verify if a coverholder is registered to bind business in Mexico?

    A full list of registered coverholders is updated monthly on the CNSF website.

  • How can I proceed with the registration process?

    Coverholders intending to register should contact Lloyd’s at mxcoverholders@lloyds.com and send the following information from their binding authority:

    • Scope of powers granted
    • Period of validity
    • Territoriality
    • Type of risks or operations that the coverholder is allowed to underwrite
    • Limits of liability
    • Any other relevant information
  • Is having previously written business in Mexico a prerequisite for registration?

    No

  • How long will the registration process take? Can I write business in Mexico whilst the registration is being processed?

    The submission of the registration application to the CNSF will take several weeks, subject to the volume of demand. The coverholder can bind Mexican businesses once the application has been submitted. The CNSF may take up to 180 days after submission to publish the name of the coverholder on the register.

  • Who is responsible for retaining the original notification of the registration?

    Lloyd’s Mexico will initiate the process of registration on behalf of coverholders, acting as their point of contact with the CNSF and holding all the original documentation related to the registration. Lloyd’s Mexico will provide coverholders with a copy of the registration document.

  • For how long is the registration valid? Do I have to register again if any of the details on the binder are modified?

    The registration is non-transferrable and valid for the duration of the binding authority. To ensure continued compliance with Mexican law, coverholders are encouraged to notify Lloyd’s Mexico of their intention to renew their registration before their binding authority expires and after a new one has been agreed, Lloyd’s Mexico must be immediately notified if the coverholder’s powers are modified or revoked at any point.

  • How should we sign once we have notified the CNSF?

    Cedents must be able to confirm the powers allocated to the intermediaries with whom they do business . Signing with a different name to the one used in the submission to the CNSF could limit the cedents’ ability to verify the coverholders’ registration status.

  • What other guidelines should coverholders follow after registration? Are there any limits to the lines of business that coverholders can write?

    Lloyd’s underwriters are not licensed to write insurance in or from Mexico.

  • Who can I contact to remain updated on relevant changes to Mexican legislation?

    Lloyd’s Regulatory Communications provide the Lloyd's Market with relevant information on UK and international regulatory changes, regulatory news articles, consultation papers, market bulletins, regulatory briefings and a risk location tool.

    Crystal, Lloyd’s Trading Advice Tool, provides market participants with quick and easy access to international regulatory and taxation requirements. If you have any questions on the content published on Crystal, please contact Lloyd's International Trading Advice