| Link(s): | Insights CoLead Binder Claims Market Guidance – Version 2 – Published August 2025.pdf CLCA Guidance Summary – Version 1 – Issued August 2025.pdf |
Context
The LMA’s Delegated Authority Claims Management Group, in partnership with LIIBA members, has updated the Co-Lead Claims Agreement (CLCA) Guidance (for LMA9186B) following feedback from the market relating to inconsistent adoption. The updated guidance is accompanies by a one-page summary document.
Key points to note and next actions
Since June 2023, it has been a Lloyd’s requirement for a CLCA to be in place to meet the Lloyd’s Claims Lead Arrangements (CLA) requirement for one Lloyd’s claims agreement party for all standard claims, and only two for complex claims. This includes claims arising from risks placed across multiple binders (co-lead binders). The LMA9186B and its guidance is designed to support the market in meeting the CLCA provisions set out in the Lloyd’s specialist guidance relating to co-lead binders.
While the changes to the guidance are not significant, reissuing the guidance provides an opportunity to highlight the importance of adopting it consistently across managing agents and brokers. We wish to highlight several areas which have been raised, specifically through market consultation, as being problematic. These include:
- the need for a documented CLCA in cases where the default position is agreed;
- CLCAs being stored on the IMR and shared with DCAs;
- one set of authorities to be agreed for DCAs;
- communicating to followers; and
- the flexibility of LMA9186B.