Would you consider becoming a Lloyd’s Broker?
The full classification of “Lloyd’s Broker” reflects the very important role that Lloyd’s brokers have to play at Lloyd’s and the high quality of mediation that they bring to the market, which is recognised around the world. Being a Lloyd’s Broker can actually bring you further opportunities by enabling you to represent other intermediaries to Syndicates and Companies in the London Market.
Who might benefit from becoming a Lloyd’s Broker?
There are three groups that might benefit from becoming Lloyd’s Brokers,
- UK regional broking firms and Non-Lloyd’s brokers operating within the “London Market”, many of which would be correspondent brokers of Lloyd’s Brokers.
- non-UK-domiciled brokers, that are also likely to be correspondent brokers of one or more Lloyd’s Brokers.
- employees of existing broking firms who want to break away to form their own companies.
What do you need to have in place already in order to become a Lloyd’s Broker?
You need to be a producer of wholesale or retail insurance business, ideally with a proportion of your existing portfolio already placed with Syndicates at Lloyd’s, or at the very least, the opportunity to acquire accounts placed at Lloyd’s as a result of becoming a Lloyd’s Broker. Alternatively, you might hold delegated underwriting authority from Lloyd’s Underwriters.
You must be fully authorised by your local regulator. You can be domiciled in most territories, as long as it would be possible to demonstrate to Lloyd’s that the Regulatory environment there met certain standards.
You need to be able to demonstrate that your resources, both Human and Financial are adequate and if they are, you can even be a “start-up” operation.
Can an applicant get support with the accreditation process?
Helodrium provides an all-round service to help achieve Lloyd’s Broker accreditation as well as manage the back office requirements of operating in the London Market. Helodrium has successfully brought other companies through the entire process, using skills developed during multiple decades in the market. Helodrium has extensive experience in commercial broking environments – in placing and in technical support, whilst periods at the then Financial Conduct Authority and the Admissions Department of Lloyd’s mean that the company can offer practical experience of the organisations that it will approach on your behalf.
Within the application process the applicant is required to demonstrate that it has the skills to deal with the market clearing house, called Xchanging. As part of our service, Helodrium will offer you the opportunity to be trained in or to outsource the Xchanging interface, information for which is detailed on a separate page.
What are the requirements for an application to Lloyd’s?
The list of requirements, whilst apparently straightforward, has within it a number of issues on which it would be beneficial for the applicant to have expert advice in order to make the application flow smoothly. In short it comprises:
A business plan, Financial Information, Curricula Vitae, Professional Indemnity Insurance, an application form and evidence of support from within the underwriting community at Lloyd’s
Helodrium will guide you through the actual requirements of each element and ensure that your application meets all the relevant standards when it is presented to Lloyd’s.