Find a Lloyd’s broker to help support your application
You can do this by using the Lloyd's Broker Directory.
Coverholders
About Coverholders
Delegated underwriting refers to an arrangement under which a Managing Agent of a syndicate delegates its authority to a company or partnership to enter into contracts of insurance on behalf of the syndicate.
What is a Coverholder
“Coverholder” means a company or partnership authorised by a Managing Agent to enter into a contract or contracts of insurance to be underwritten by the members of a syndicate managed by it in accordance with the terms of a Binding Authority. Our Definitions Byelaw provides definitions of the various terms and expressions used across Lloyd’s.
The role of a Coverholder
When a Lloyd’s Managing Agent delegates its authority to an approved Coverholder under a Binding Authority, the approved Coverholder may enter into contracts of insurance and issue insurance documents as evidence that contracts of insurance have been accepted.
An approved Coverholder will normally also be allowed to collect premiums, and may be allowed to handle claims or perform other functions. The scope of its authority will be set out in the contract called the Binding Authority agreement.
What is a Binding Authority?
A “Binding Authority” is an agreement between a Managing Agent and a Coverholder under which the Managing Agent delegates its authority to enter into a contract or contracts of insurance to be underwritten by the members of a syndicate managed by it to the Coverholder in accordance with the terms of the agreement.
Understanding the terminology
There are several resources available providing definitions of the various terms and expressions used across Lloyd’s.
The benefits of Coverholder arrangements
The Coverholder model is a proven and successful way of placing business with Lloyd’s, providing benefits to each of the parties involved.
Benefits of being a Coverholder
Coverholders benefit from partnership with Lloyd’s syndicates by gaining access to Lloyd’s excellent brand, security and ratings, as well as access to experienced Underwriters and Brokers. Coverholders may therefore offer a wide range of specialist classes of business underwritten at Lloyd’s, for example personal accident cover for sports people and specialty liability insurance.
Benefits of placing business with Lloyd’s Coverholders
In addition to the above benefits, placing business with Coverholders provides a more cost effective means to access Lloyd’s than on an open market basis.
Benefits for Lloyd’s syndicates
Coverholders enable syndicates to underwrite locally without the need for expensive local infrastructure. The key to this is finding Coverholder partners with the right experience and quality. These businesses will usually have considerable expertise in particular niche products and regions and have excellent local relationships. They can also help develop new products in partnership with Lloyd’s Syndicates and Lloyd’s Brokers. Lloyd’s keeps a directory of all of its Coverholders which will tell you which Lloyd’s Coverholders are approved in your country. In order to find a local Coverholder for a specific class of business, it would be beneficial to contact a Lloyd’s Broker who deals with Coverholder business. You can find a directory of Lloyd’s Brokers online.
Becoming a Coverholder
First steps
1.
2.
Find a Lloyd’s Managing agent to sponsor your application
You can do this by using the using the Managing Agent directory.
3.
Register for Atlas
The broker (or the Managing Agent if dealing directly) will set up your application on Atlas. Once this is done the applying entity will be given a unique Atlas pin. Atlas is the online market system for the process of managing Coverholders.
You will then need to register for access to Atlas.
Expectations
It is Lloyds expectation that the applicant must not:
- Use 1 lime street as a coverholder address; this should be the address registered to the applicant's business with the local regulator
- Have Lloyd’s in their legal and/or trading name
- Use any Lloyd’s branding before full approval is issued
- Follow branding guidelines post approval
- Have a trading name that is a separate legal entity
- Use the word “compliance” in the legal name
- Use a different legal name as to what is on the applicants license
What you will need
Lloyd’s will carry out an extensive review of your application. The following is not an exhaustive list of requirements but the key components and documents that we recommend you consider gathering in advance of your application.
Application process
Full Application
Any company who wishes to bind insurances and/or issue documents on behalf of a Lloyd's underwriter must first be approved to act as a Lloyd's Coverholder by completing the application process. Each applicant requires a sponsoring Lloyd's Broker and Managing Agent, who perform their own due diligence of the application before it is submitted to the Lloyd's Delegated Authority Team.
Branch Application
A branch application can only be submitted where the legal entity is identical to an existing approved coverholder. This does not include subsidiary companies and or sister companies within the same group. If the application is for an entity in the same group but with a different legal name, a full application must be submitted.
Delegated Authority resources
Explore the resources available to support Delegated Authorities.
Back to Delegated Authority