Lloyd's Market Association Bulletin

LMA18-048-AC  |  06 November 2018

LMA Risk Location and Stamp Decision Guidance (Lloyd's Brussels)

In the event of a hard Brexit in March 2019, Lloyd’s syndicates will no longer be licensed to write EEA (and Monaco) risks on syndicate paper. Lloyd’s has therefore mandated that risks incepting on or after 1 January 2019 and located in the EEA must be written using an LBS stamp. It is therefore important that underwriters are able to identify risks which create an EEA risk location and use the LBS stamp accordingly.

The use of existing Lloyd’s tools (Crystal, Risk Locator and Stamp Decision Tool) should always be the first step when trying to identify risk location. These resources will cover most straightforward scenarios. In addition, they provide guidance on acceptable routes to market, tax, local clauses etc. However, establishing risk location(s) can be complex and there may be inconsistencies, overlaps and potential contradictions over how different jurisdictions define risk location and approach licencing. Non-compliance may result in regulatory or fiscal investigations.

In general, regulators and Lloyd’s are more likely to look favourably on a managing agent that has taken an informed and consistent approach to compliance. Therefore, the LMA has, with the input from members of the LMA Regulatory and Underwriting Committees, developed guidance to support managing agents in establishing an achievable and consistent approach within the market, including between multiple underwriters on a single placement.


 View the Risk Location Guidance web page and download the Risk Location & Stamp Decision Guidance Tool


Mel Goddard 
 Patrick Davison 
Market Liaison & Underwriting Director    Manager, Property, Reinsurance and Delegated Underwriting