Lloyd’s obtains a weekly download of FSA data, from which managing agents can easily select the restricted coverholder to be registered. If a firm is not on the FSA download, it cannot be registered as a restricted coverholder and it may not be eligible as a restricted coverholder.
The FSA data shows only the head office address of each firm. The restricted coverholders website therefore only holds one record per restricted coverholder, irrespective of how many offices of that firm have restricted binding authorities.
Managing agents are asked to answer the following 9 questions for each of their restricted coverholders. These questions allow Lloyd’s to understand and profile the risks posed by each restricted coverholder:
1. Please confirm that you are satisfied that this firm is eligible to be recorded on this register as a restricted coverholder.
2. Will you be entering into a restricted binding authority with this firm? (As opposed to a binding authority which requires registration and the coverholder to be approved)
3. How many offices of this restricted coverholder will enter into contracts under your restricted binding authorities? (The drop-down box allows a choice of broad bands covering a number of branches)
4. On behalf of which of your managed syndicates will you delegate authority to this firm under restricted binding authorities? (Select one or more from a dropdown list of your syndicates)
Then for each syndicate please answer questions 5 to 9:
5. The routes through which you intend to manage the restricted coverholder, including the names of any placing Lloyd’s brokers (or service companies), along with any wholesale coverholders and their contract numbers (all from drop-down lists).
6. Classes of business (choice of one or more of the 4 classes allowed).
7. Gross premium income (choice of one of 3 premium income bands)
8. Whether the restricted coverholder has the ability to settle claims, and, if so, the level at which they have to refer claims to underwriters (choice of one of 3 claims bands).
9. Whether the documentation issued by the restricted coverholder clearly identifies you as the insurer and, if not, the contract reference number used in its documentation.
For Questions 5 to 9, if there is more than one office, the answers should be aggregated for the restricted coverholder as a whole.
If the restricted coverholder has already been recorded on the website by one managing agent, any other managing agent wishing to grant them a restricted binding authority must record its interest. The process is identical to that used for registering a new restricted coverholder.
If the FSA data for a restricted coverholder changes (name, address, authorised status or loss of FSA permissions) the website will generate automatic e-mails to the managing agents who have recorded their interest on the website. Please note that, particularly with apparent loss of status or permissions, managing agents should always make their own enquiries to confirm this.
Managing agents are responsible for the ongoing maintenance of the details they record. There is an ongoing obligation on managing agents to keep the register up-to-date.
