Global News - Lloyd's gives syndicates scope to write 3-yr contracts from 2016
Source: Asia Insurance Review | Dec 2015
Lloyd’s has said that syndicates will be able to write binding authority contracts for up to 36 months from 1 January 2016. The specialist market said this in an important step in the London Market Target Operating Model (TOM) delegated authority project.
Until now, binding authorities could not exceed 18 months and, in most cases, contracts were annual. In order to permit multi-year binding authorities, syndicates must develop a process to ensure that if a binding authority stretched over several years, the business was properly allocated to the current year of account.
Ms Shirine Khoury-Haq,Director of Operations at Lloyd’s and sponsor for the TOM, said: “Our coverholders have told us that the ability to write multi-year binders at Lloyd’s will make it easier to do business and we are delighted to have come up with a process that delivers this require-ment. This, in addition to coordinated coverholder audits, is a significant development in the delegated authorities’ work-stream for TOM.”