Once the broker and client select the lead, coverage terms and capacity are initially agreed between the lead and co-lead underwriters within the consortium. These are then submitted for rapid review by the other consortium members, and terms are then presented to the broker.

Broker/client decide which consortium syndicate they would like to act as consortium lead and approach this syndicate with their submission.
Lead syndicate determines if the risk is suitable for the consortium and confirms appetite and likely capacity with other members.
If the risk is not suitable for the consortium, the broker/client can approach any of the 4 syndicates on an open market basis.
Lead syndicate chooses co-lead. The 2 syndicates work together to underwrite terms and obtain agreement and line sizes from remaining syndicates.
Consortium terms presented to the broker/client by the lead syndicate.
If terms are accepted the lead syndicate enters their line and the overall consortium line. The broker/client will then need to collect the pre-agreed lines from the remaining members.

A major advantage of the Lloyd’s market is that brokers can assemble large scale capacity very rapidly. The construction consortium is no exception, with quotes for cover delivered swiftly to meet brokers’ deadlines.

“When it comes to the largest projects, clients had a restricted choice of lead insurers, with fewer than half a dozen markets able to offer the capacity required. Through the consortium, Lloyd’s has expanded choice for risk managers and brokers.”

Ian Smith

Ian Smith
Underwriter, CNA Hardy