Brokers Must Fulfill Standards
To Deal Directly With Lloyds
Beginning the process of becoming an accredited broker to Lloyds of London is as simple as filling out an application, but the process doesnt end there.
According to Steve Boucher, head of Broker Services Worldwide, part of Lloyds Worldwide Market Division, a broker seeking entry to Lloyds must meet the following criteria:
Suitability. The broker must be well-versed in international business and have the capacity to handle accounts worldwide.
Financial. The broker must have high-level indemnity at six-times net retention and prove to be a viable and profitable firm. It also must have excess capital of not less than $75,000 and a suitable customer base.
Customer Service. The broker must have a customer complaint system in place and be able to interface with the Lloyds markets and accounts.
The applying broker must fill out a detailed application, after which Lloyds performs its due diligence, which takes two to three months to complete, according to Lloyds officials.
Once approved, the broker is designated a provisional broker, which can last up to three years while the new firm learns the Lloyds system, said Mr. Boucher, noting that the broker does have access to all syndicates during this period. If, after this "hand-holding" period, the broker has learned the ropes, the firm receives the full Lloyd's broker accreditation designation.
Mr. Boucher said the level of interest remains "quite high" and there will be more brokers admitted to Lloyds within the next six-to-12 months.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 10, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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