Delegated authority guidance
Bank accounts
To ensure that insurer monies are appropriately protected, identifiable, traceable and recoverable, and that the handling complies with applicable legal, regulatory and contractual obligations.
Coordinated audits
Lloyd's is keen to promote both high standards and consistency in the audit of its coverholders and Delegated Claims Administrators (DCAs).
Code of practice
The Delegated Authority Code of Practice has been retired and replaced with individual guidance topics.
Conflict of interest
Third parties acting for Lloyd's in overseas territories are subject to all relevant local laws and regulations, including those regarding conflicts of interest, therefore, these third parties must understand and comply with all applicable conflict of interest laws in their home and any other operating jurisdiction.
Contract layering & sub-delegation
To ensure a consistent market approach to sub-delegation and contract layering, while reducing the risk of sub-delegation occurring without the managing agent’s knowledge or oversight, regulatory and tax breaches, customer detriment, and unnecessary complexity within distribution chains.
Consortia
A contractual arrangement under which one or more Managing Agents delegate authority to another Managing Agent to enter into contracts of insurance on their behalf.
Consortium & coverholder (c&c) numbers
To ensure the market are aware of the requirements and implications when c&c numbers are used by consortia and coverholders.
Continuous contracts
Lloyd’s permitting continuous binding authority contracts is a key component to a long-term shift in placing binding authority contracts through our platform.
Delegated authority referrals for country managers
Lloyd’s Country Managers act as local representatives for the Lloyd’s market, providing regulatory and licensing guidance to Coverholders and Managing Agents in their territories.
Delegated underwriting
Guidance for managing agents delegating underwriting authority to third parties, including portfolio solutions and digital follow models.
Key staff
Key staff play a critical role in the success of any contract of delegation. It is therefore important that managing agents are aware of who are the key staff at coverholders they work with and carry out appropriate due diligence.
Lapsing & coverholder deregistration
The process in which Coverholders are assessed in relation to their active binders on a bi-yearly basis.
Letter of authority & mandate of lead security
Guidance regarding letter of authority and the mandate of lead security.
Line slips
An agreement by which a Managing Agent delegates its authority to enter into contracts of insurance to be underwritten by the members of a syndicate managed by it to another Managing Agent or authorised insurance company in respect of business introduced by a Lloyd’s Broker named in the agreement.
Managing agent due diligence of third parties & contracts of delegation
Lloyd’s expectations of due diligence carried out on third parties by managing agents.
Master coverholder arrangements & master broker arrangements
Master coverholder and broker arrangements can involve some complexity and must be carefully structured. This guidance is intended to promote consistency across the market and better data transparency into Lloyd’s.
Operational resilience
Operational Resilience (OR) is a Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) requirement.
Oversight & monitoring of contracts of delegation of underwriting authority
To ensure a consistent oversight for contracts of delegation of underwriting authority and which aligns to Lloyd’s risk-based approach.
Third-party ownership
Managing agents are responsible for understanding who owns and controls the third parties to whom authority is delegated.
Remote working
With the development of technology and modern working practices, there is an increase in companies employing staff who work remotely, often from home via remote internet connections or other locations such as coworking spaces.
Reporting standards
Coverholders and DCAs have to provide reporting information under delegated authority contracts to Lloyd’s syndicates. This page includes various tools to assist with this reporting.
Retrospective endorsements
This retrospective endorsement guidance supersedes the previous Lloyd’s retrospective endorsements guidance and the associated approval process.
Wording expectations for contracts of delegation
This guidance is limited to contracts of delegation of underwriting authority or the issuance of insurance documentation and does not deal with requirements for contracts of (re)insurance.