Lloyd’s offers a strong brand and the scope to accommodate the strategic ambitions of risk-takers and brokers alike. Many applications are made annually to Lloyd’s to join its business community but perhaps what is less well-known is the surprisingly high failure rate. DRM will help you join the Market by supporting both the preparation of the proposal to Lloyd’s and also during the application process itself.

Coverholders

Securing Delegated Underwriting Authority from Lloyd's Underwriters has become more focused now that Lloyd's has determined that all new binding authorities would need to reflect the declared intentions of the Syndicate writing the business. This is done by cross-referencing the business proposed within the application against the Syndicate Business Forecast lodged each Underwriting Year with the Franchise Performance Department by the Managing Agent which manages the sponsoring syndicate. DRM will help you and your coverholder develop a cohesive application that takes into consideration issues relating to the Syndicate sponsoring the application, the nature of the business to be written, as well as the terms needed to secure a viable flow of premium income. Ancillary issues, which must themselves meet Lloyd's requirements, will also be covered.

Brokers

Following the Streamlining of Lloyd’s Broker Registration in April, 2007, there has never been a better opportunity to achieve face-to-face negotiations with Lloyd’s Underwriters. For brokers subject to regulation under the EU Insurance Mediation Directive, the criteria to meet are few and eminently accessible. However, making a “blind” application can be a little daunting and DRM Consulting Ltd can assist applicant brokers by advising on an approach that should meet with Lloyd’s approval.

We will help you formulate an acceptable proposal, handle the application, accompany you to meetings with the team in Lloyd’s and at Xchanging, respond to issues raised and complete the formalities.

Syndicates

There is a new world of opportunity with a number of Lloyd’s Managing Agents being prepared to accommodate new syndicates using a “Turnkey” approach, in which the Capital Providers and the Managing Agents share the responsibilities of running the syndicate in accordance with Lloyd’s requirements. At some future date, the Capital Providers – or the active syndicate employees, if different – can make a subsequent application to Lloyd’s to set up a new Lloyd’s Managing Agent to which the management of the syndicate already in operation would be transferred.

Where the process for brokers is relatively straightforward, new Syndicates do have a greater impact on the Lloyd’s Franchise and care is needed in identifying opportunities that fit Market ideals while also demonstrating that “gain” is more obviously shared. DRM offers assistance in compiling a “win-win” Business Plan to put in front of Lloyd’s and can play a supporting role in seeing the application through to syndicate start-up.

Managing Agents

This type of application can be the most complex because Lloyd’s and the Financial Services Authority share the process of authorising a new business of this type. Even though there are opportunities for Turnkey arrangements, a number of recent applications have been made jointly for a new Syndicate alongside its own Managing Agent. The Regulators look not just for the kind of underwriting plan described above but also for suitable experience and appropriate skills from all the significant participants, together with effective Corporate Governance and Risk Management.

There would need to be separate Business Plans for the syndicate and the Managing Agent, with care taken to ensure that the financial strength of each proposal had been stress-tested against a variety of adverse conditions. DRM can offer assistance in the formulation of the plans and the presentation of the application to Lloyd’s and the FSA, including dealing with any issues arising.