Coverholder Support

The delegation of authority, via a network of ‘Coverholders’, forms a key part of our business distribution network.

By utilising local entities, with local expertise, we are able to access business across the globe that would otherwise never make its way to London.

As a business we pride ourselves on forging strong relationships with Coverholders helping to create and develop lasting partnerships.

In support of this important distribution network we have a dedicated Delegated Authority team in place to provide in-house expertise on the management and oversight of delegated authority business.

The team acts as a point of contact for all delegated authority stakeholders, including underwriters, brokers and their clients, providing advice on Tokio Marine Kiln standards for delegated authority business, guidance on the implications of regulatory changes and assurance to the business through its management of the audit programme.

The Delegated Authority team is available for consultation on all aspects of delegated authority business, at our offices at 20 Fenchurch Street.

Applicant coverholders

We are one of the largest providers of binding authority capacity to the Lloyd’s market. We enjoy long-term relationships with over 200 coverholders around the world.

What is a Coverholder?

Coverholders are firms to whom Tokio Marine Kiln delegate the authority to underwrite insurance business on their behalf. Coverholders will usually bind insurance risks and issue insurance documents, they may also have authority to handle claims.

The document setting out the terms of the Coverholder’s delegated authority is known as a binding authority. Tokio Marine Kiln has a team dedicated to managing these binding authority agreements and they can guide applicants through the process of becoming a Coverholder.

For firms looking to become a Lloyd’s Coverholder more information is available via the Lloyd’s website.




How to become a Coverholder

If you wish to become a Lloyd’s Coverholder, approval will also need to be secured from Lloyd’s. Guidance on the Lloyd’s application process is available here. Before entering into a binding authority agreement with a Coverholder, Tokio Marine Kiln completes a thorough due diligence process on the firm to provide assurance to the business that they meet all of the Tokio Marine Kiln Coverholder Standards. Only once this process has been completed will a contract be incepted.

As an existing Tokio Marine Kiln coverholder you may have some questions regarding the regulation of your business and the audit process, or you may need access to some Lloyd’s wordings.

Existing coverholders

Regulatory advice

Binding authority regulation is determined and conducted by the Corporation of Lloyd’s. You will find links to policies and guidelines affecting coverholders below:




Audit information

Our regulators require that an effective and responsible audit programme is in place to audit Coverholders routinely and non-routinely to ensure compliance with all regulatory byelaws.

Audits of Coverholders led by Tokio Marine Kiln review the financial, regulatory, operational and competitive health of a Coverholder, in order to identify any problems. As well as serving as a free ‘health check’ for Coverholders, this review also protects Tokio Marine Kiln and its supporting markets from the adverse impact of any non-compliance.

The outcome of an audit is shared with other market participants who have a contractual interest in that Coverholder wherever possible to minimise disruption to Coverholders. All audit reports are held securely and confidentially by Tokio Marine Kiln.


Our aim is to keep you up to date with the topics currently under discussion in the world of binding authority management. If you want clarification on any subject, please contact us.

What is delegation/sub-delegation?

An agreement between a syndicate(s) and a coverholder is a legally binding agreement and permits a coverholder, as an agent of the syndicate, to underwrite business that the syndicate would otherwise handle directly under a prescribed set of terms and conditions. This empowerment cannot be delegated to any other party by the approved coverholder unless otherwise approved by Lloyd’s and Tokio Marine Kiln.

Can I trade online?

Coverholders are increasingly looking to electronic trading solutions to sell products underwritten by syndicates. This is perfectly acceptable, but internet trading can be fraught with problems. As managing agents, we are responsible for the actions of coverholders selling Lloyd’s secured products, and as such we have to ensure that all coverholders are trading both legally and ethically.

How do I manage the insurance monies?

Insurance premiums received by a coverholder must be held in a segregated trust account, since funds other than pre-agreed commissions are the property of the syndicate. In other words, the coverholder is only entitled to retain the commissions, and all net balances must be passed to the subscribing syndicate(s) within a set timescale. We ask new coverholders to have trust accounts in place for holding insurance monies, or have their bank acknowledge this arrangement formally on bank headed paper.

What are the guidelines on anti-money-laundering/international sanctions and financial crime?

These issues bring very real exposure. Coverholders who fail to adhere to the Lloyd's guidelines expose applicable staff within Tokio Marine Kiln and subscribing markets to criminal action and conviction in the event that, as agents of Tokio Marine Kiln, they fail to uphold internal controls and processes that coverholders must have in place. Coverholders are expected to have Financial Crime Policies in place that comply with local requirements and are made available to all employees. Coverholders are expected to ensure that all staff complete Financial Crime training.

What is Solvency II?

Solvency II is a European directive that establishes an EU-wide set of capital requirements and risk-management standards. It came into effect on 1 January 2013. Coverholders will find more information available on the Lloyd’s website.

What is the Bribery Act?

The Bribery Act is a piece of UK legislation that came into effect from April 2011 and has wide-ranging implications for coverholders and managing agents. You can find more information about the Bribery Act on the Lloyd’s website.

What is Atlas?

Atlas is a Lloyd’s online market coverholder management system. It is accessible to coverholders, who are encouraged to upload key compliance documents to the system for viewing by brokers and managing agents. Access to Atlas is provided by Lloyd’s.


Victoria Andrews

Victoria Andrews

Group Head of Delegated Authority Services


+44 (0)20 7280 8596

Leo Griffiths

Leo Griffiths

Group Deputy Head of Delegated Authority


+44 (0)20 7767 2354