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, in the form of 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 conducts business in over 200 countries around the world and much of this is done through the coverholder model. Coverholders have local knowledge of their market and customers and create an excellent distribution platform for global insurers to distribute underwriting capital. They benefit from securing exclusive deals, underwriting expertise, financial strength and a 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 areas:
- Business planning
- Support for audits & due diligence
- Market presentation drafting
- Drafting & negotiation of the Binding Authority Contract
- Negotiation of policy wordings
- Broking of the submission to insurers and Lloyd’s Syndicates
- Securing of delegated authority
- Reinsurance support for direct insurers seeking capital relief or protection against frequency or catastrophe claims
