Lloyd's Market Association Bulletin
LMA22-025-SM | 01 September 2022
Swiss Article 19 ('AVO 19') BAA Endorsements
The LMA's DA Wordings Group has published endorsements to delegated authority insurance contracts (Binding Authority Agreements, ‘BAA’) addressing the impact of Swiss Federal Ordinance Article 19 (‘AVO 19’), which requires Swiss regulated insurers (Lloyd’s Zurich) to have, stored at their Swiss office, documentation related to their Swiss Insurance business.
AVO 19 imposes enhanced requirements and frequency of data and documentation to be reported to and centrally stored by Lloyd’s Zurich in respect of all Swiss insurance business (besides reinsurance) written via both Swiss and non-Swiss domiciled coverholders and/or brokers.
These endorsements should therefore be appended to all BAAs, incepting on or after 01 September 2022, that grant authority for Swiss insurance business to be underwritten.
The endorsements should also be appended to any BAAs, even if now expired that had live Swiss business or an open Swiss claim as at 31 March 2022. The coverholder will be required to report to Lloyd’s Zurich from the date the endorsement is agreed but the reporting should include any risks live and claims open on the 31 March 2022 onwards.
Further details regarding the data and documentation requirements, guidelines and deadlines can be found in the Lloyd’s Market Briefing from April 2022.
Download the endorsements here:
These can also be found on the Lloyd's Wordings Repository under reference LMA5597 and LMA5598.
All LMA model clauses are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model clauses as they see fit; the LMA does not protect its intellectual property rights over model clauses. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk.
Delegated Authorities Executive
Head of Regulatory Affairs