Are you confident that your coverholders are operating within the terms of their binder with you?

Coverholder/TPA Audits

An auditing service provided to Lloyd’s Managing Agents and other (re)insurers who delegate, or propose delegating, underwriting and/or claims’ authority to a third party based in the UK. The auditing service will establish if the firms’ assuming delegation are operating within the terms of their binding authority or TPA agreement, and have adequate capabilities, controls & systems and comply with applicable regulatory rules.

Our team has London Market underwriting experience that understands ‘routes to market’ and appreciates the importance of coverholders in the distribution chain. Our audit conclusions are constructive and focus on evidencing; with comment on the corporate culture within the firm being audited.

Our auditors have access to a dedicated team that provides advice and guidance on insurance mediation. Amongst other things, this resource has extensive “front end” knowledge on the sales, distribution and servicing aspects of the London Market Conduct Risk proposition. This knowledge and experience within the team, enables our audits and due diligence to identify and evidence these important Conduct Risk factors.

The Conduct Risk principle requires that insurers have effective systems and controls for proactively managing the delegation of underwriting and/or claims’ authority. This risk management includes due diligence of prospective coverholders/TPAs and audits once authority has been delegated.

Engaging with us gives the insurer control of a scalable and consistent audit process, depending on the insurer’s risk assessment of the entity and the insurance/reinsurance business concerned.

Amongst other things, our audits and due diligence cater for:

  • coverholders and TPAs operating in the UK, Republic of Ireland and the Channel Islands
  • worldwide Risk Locations (regulatory and tax)
  • insurance and reinsurance
  • all types of delegation from prior submit to full authority
  • sub-delegation
  • wholesale and retail coverholders
  • all customer classifications (Consumer, Commercial, Large Risk & Reinsurance)
  • micro-enterprise customers
  • electronic trading
  • Lloyd’s coverholder audit scopes (2014 & 2018 versions) or bespoke scopes
  • extended scopes for audits of claims’ TPAs
  • audit report formats as required
  • communication with our Principal during the audit process, where necessary.

020 7692 1923

For more information about coverholder or TPA audits please call us or email

admin@insurancecompliance.co.uk