On Jun. 27, UK Lloyds updated on delegated authority agreements.
UK Lloyd updated on delegated authority agreements and mandate of lead security.
To advise managing agents, brokers, coverholders of expectations re providing details of participating Lloyd’s lead syndicate/s within policy documents issued in agreements.
Overview
Advises managing agents, brokers, coverholders of Lloyd’s expectations for providing details of Lloyd’s Lead in contract of insurance issued in delegated authority contracts.
That, including binding authority agreements, line slips and consortium arrangements.
Includes detailed new requirements for documentation to issue under said contracts.
The new requirements apply to all policies issued under contracts of delegated authority where delegated authority agreement incepting on or after Jul. 1, 2025.
Context
It has been longstanding market practice, for many policies issued under delegated authority agreements, that details of Lloyd’s market participation is shown as certain underwriters at Lloyd’s without naming any of the subscribing syndicate/s.
This generic language can contribute to lack of clarity of the security behind the policy.
Lack of any details of participating Lloyd’s security can make difficult for policyholders to confirm quickly which syndicates are providing the cover.
As result of commercial/regulatory challenges, including misuse of Lloyd’s brand arisen from this practice, it reviewed requirements re the policy documentation being issued.
Effectiveness
Requirements apply to delegated authority agreement incepting on / after Jul. 1, 2025.
However, while there is no requirement to amend contracts of delegated authority mid-term, encourages market to adopt the change with immediate effect, where possible.
