Lloyd’s is a face-to-face market, with all the dynamism and innovation that a market generates. Like any market, it enables those with something to sell – underwriters providing insurance coverage – to make contact with those who want to buy – brokers, working on behalf of their clients who are seeking insurance.
Together, the syndicates underwriting at Lloyd’s form one of the world’s largest commercial insurers, and a leading reinsurer.
However, more important than sheer size is the breadth and depth of specialist broking and underwriting expertise, brought together under one roof at Lloyd’s. That’s why they are often the first to insure new, unusual and complex risks.
Lloyd’s accepts business from over 200 countries and territories worldwide. Their 80 licences, supported by a network of local offices, ensures access to insurance markets large and small.
Lloyd’s is not an insurance company, it is a partially mutualised market where members of Lloyd’s join together as syndicates to insure risks.
Much of Lloyd’s business is written on a subscription basis, with more than one syndicate taking a share of the same risk.
What is a Lloyd's Coverholder?
Coverholders are an important source of business for Lloyd’s with their numbers increasing steadily in recent years. There are now about 2,500 Lloyd’s coverholders producing 30% of Lloyd’s premium income each year. The balance of Lloyd’s business is distributed around the world through a network of brokers.
Coverholders allow Lloyd’s syndicates to operate in a region or country as if they were a local insurer. This is achieved by Lloyd’s syndicates delegating their underwriting authority to coverholders.
In 2011 TLC went through a very extensive process ensuring that our systems and people comply with the extremely high standards insisted upon by Lloyd’s. At the end of this process, we were granted authority to underwrite on behalf of a Lloyd’s syndicate. TLC as the coverholder issues the required insurance documentation and handles claims in accordance with the terms of the delegated authority as set out within an agreement known as a binding authority.
The Lloyd’s binding authority agreement with TLC is clearly stated on all documentation under the section describing the insurer as follows:
INSURER: Certain Underwriters at Lloyd'sTLC Insurance Limited as Lloyd’s Coverholder under Agreement Number: B0334SC3342019219