BINDING AUTHORITY

Coverholders, or Managing General Agents, now play an important role in the way in which insurance capacity is distributed around the world.

A coverholder is a legal entity, being a partnership or a company, which is authorised to offer insurance quotations, bind contracts of insurance and issue policy documentation on behalf of one or more insurance companies or Lloyd’s syndicates.

Lloyd’s of London transacts business in over 200 countries around the world and much of this is done through the coverholder model, whereby a local coverholder business is granted authority to act on behalf of the Lloyd’s Syndicate or other insurance company. Coverholders have local knowledge of their market and customers and create an excellent distribution platform for global insurers to distribute underwriting capital. Coverholders benefit from securing exclusive deals, underwriting expertise, financial strength and brand to sell to its clients or brokers.

The coverholder application process can be made less complicated by employing the help of a specialist Lloyd’s broker. W Denis Insurance Brokers Plc has expertise in the following:

  • Business Planning
  • Market Presentation Drafting
  • Broking of the  Submission to Insurers and Lloyd’s Syndicates
  • Drafting and negotiation of the Binding Authority Contract
  • Negotiation of policy wordings
  • Securing of delegated authority
  • Support for audits and due diligence
  • Reinsurance support for direct insurers seeking capital relief or protection against frequency or catastrophe claims