AAMGA noted as being integral to this new, streamlined process
Lloyd’s, the world’s specialist insurance market, today issued a market bulletin announcing it is changing its requirements to allow multi-year binding authority agreements of up to 36 months. The bulleting lays out the new process and requirements, while also recognizing the American Association of Managing General Agents (AAMGA) for its years of advocacy on this important issue for Lloyd’s coverholders. The new agreements will take effect in 2016.
“We’ve been advocating for this change for several years to provide peace of mind and security – and frankly good business practices – for all Lloyd’s coverholders,” noted Roger Ware, president of AAMGA. “We met with Lloyd’s Chairman John Nelson as recently as May of this year at our Annual Meeting in Maryland to again press the issue, and we’re pleased to learn of Lloyd’s actions today.”
Currently, Lloyd’s coverholders can only enter into binding authority agreements of up to 18 months, while in most cases these agreements are renewed annually. Under the new multi-year binding authority agreements, Lloyd’s coverholders will be able to establish these agreements for up to 36 months. A streamlined annual confirmation component is included, in which Lloyd’s will send a simple form to its coverholders each November or December requesting appropriate confirmation of binding authority.
Grant Kimball, president of Canadian-based Angus-Miller, an associate member of AAMGA, applauded the change to Lloyd’s binding authority agreements.
“Lloyd’s listened to our industry representatives, reviewed the market landscape and made an appropriate and practical decision,” noted Kimball. “These multi-year agreements will take some of the guess work out of renewing business as well as make it easier to work effectively and efficiently with Lloyd’s.”