Consortium & Coverholder (C&C) numbers

Types of delegated authority this guidance is relevant to

• Binding authority agreements 
• Coverholder appointment agreements 
• Service company agreements
• Consortium agreements

Why guidance is needed

To ensure the market are aware of the requirements and implications when C&C numbers are used by consortia and coverholders.

Lloyd’s requirements

All C&C numbers

For all C&C numbers being reserved, the following checks must be undertaken:

• Regulatory implications – For entities based outside of the UK, please ensure conversations are carried out with the relevant country managers before proceeding. Save to file any approval emails from country managers as Lloyd’s may ask to see this retrospectively.
• Tax implications – For entities based outside of the UK, please ensure you have checked with TaxDept@lloyds.com and/or LloydsEurope.Tax@lloyds.com before proceeding. Save to file any approval emails from the tax team as Lloyd’s may ask to see this retrospectively.
• Lloyd’s and Lloyd’s Insurance Company (LIC) capacity – Both Lloyd’s and LIC capacity cannot be combined on one C&C number. 
• LIC reinsurance – LIC business will always require at least two C&C numbers due to the way business is reinsured back to the syndicates. One C&C number will be for the business written and the second will be for the reinsurance.
• Non-Lloyd's participation – There cannot be non-Lloyd's participation on a C&C number, however, a company market stamp can be placed alongside a C&C number as per the Velonetic guidance. 
• Branding – Please ensure the appropriate branding is applied to the insurance policy documentation as per the brand guidelines. If a coverholder is using a C&C number, this cannot be marketed or branded as a ‘consortium’.
• If a contract of delegation is led by a C&C stamp, then the details of the underlying security leader should be disclosed on the policy documentation including the name of the managing agent and syndicate number in line with the mandate of security FAQs.
• LIC wording changes – Where deviations from LIC template wordings are proposed, LIC review is required where LIC capacity or licensing considerations apply, and legal review should be obtained for any material deviations. The lead managing agent is responsible for coordinating the review and approval process and ensuring all necessary sign-offs are obtained before execution. Requests for approval should be submitted to LloydsEurope.DelegatedAuthority@lloyds.com with tracked changes.

Coverholders using C&C numbers

Coverholders wishing to use a C&C number no longer need to be referred to Lloyd’s if the above requirements have been met and documented. 

Contract Layering referrals

Lloyd’s and LIC allow consortia to participate using a C&C number on binding authority agreements, coverholder appointment agreements and line slips without prior approval. However, a consortium participating on another consortium does require referral to Lloyd’s.

A coverholder using a C&C number to participate on consortia, line slips and other binding authority agreements or coverholder appointment agreements will require prior approval from Lloyd’s. To obtain such approval please email coverholders@lloyds.com with the answers to the questions on the referral criteria.

Registration of C&C numbers

Every C&C number must be registered with Velonetic, to do so, please use the Velonetic guidance. The numbers will then be published in Velonetic’s booklet showing the capacity that supports each C&C number. 

Registration on Lloyd’s systems

Unless dispensation is granted by Lloyd’s to say otherwise, binding authority agreements, coverholder appointment agreements and service company agreements that are providing the coverholder with a C&C number need to be registered on Lloyd’s systems prior to inception. 

Binding authority agreements, coverholder appointment agreements and service company agreements that have a C&C number participating on them as capacity also need to be registered on Lloyd’s systems, However, Lloyd’s systems do not currently recognise C&C numbers as capacity; therefore, to register the interest of a C&C number on a contract of delegation on Lloyd’s systems please use this knowledge article and navigate to the part regarding capacity.

Lloyd’s expectations for managing agents

Lloyd’s expects managing agents, whether lead or follow, to have robust processes and procedures in place to ensure appropriate levels of oversight for contracts of delegation utilising C&C numbers.

Data transparency 

Where contracts of delegation are layered using C&C numbers, there must be data transparency for all lead and follow markets of each primary and secondary contracts to ensure each party is aware of which risks their capacity is participating on. To ensure this, Lloyd’s requires both the primary and secondary contracts to set out how premium, risk, claims, auditing, documentation, and contract changes will be handled and shared with the subscribing market. Both primary and secondary contracts must also define reporting requirements and frequency and must not contradict each other.

Syndicate business plan alignment

C&C numbers that are registered but not utilised create additional administrative effort for Velonetic in reallocating those numbers and managing wider implications. Managing agents should therefore take this into account when working with brokers to request C&C numbers for the year ahead. While we recognise the operational benefits of early registration to prepare for peak activity ahead of 1 January renewals, managing agents are expected to adopt a proportionate approach. This means only registering C&C numbers where they have completed appropriate checks and have a high degree of confidence that the numbers will be used, taking into account business plan approval timelines, whether the contract of delegation providing such authority has been signed and registered on Lloyd’s systems where applicable, and any additional factors that may affect final signed lines or capacity. Managing agents should also remember to ask Velonetic to release any reserved numbers that are not being used.

Last reviewed 28/09/2026

Last updated 28/09/2026