The desk and the paper

Identify the risk bearer and the authorised decision makers before discussing economics. Distribution, delegated underwriting, claims authority and evidence supply are different roles. STABLE

Role	Function
Carrier / risk bearer	Insurance obligations under the policy and applicable law
MGA / MGU	Underwriting or administration within an actual delegated agreement
Lloyd’s coverholder	Approved entity with defined binding authority
Broker	Placement and advice under its applicable authority
Evidence supplier	Defined controls, observations, records and verification support

A firm can perform several functions, but its title alone does not establish authority or absence of risk participation. Confirm the entity, contract, jurisdiction and capacity arrangement. STABLE

At Lloyd’s, coverholder authority is granted by a managing agent through a formal binding authority. Lab membership does not confer it. GROUNDED · Lloyds Official coverholder guidance, checked September 30, 2026.

Capacity and fronting

Capacity describes risk-bearing support for a programme under agreed terms. A fronting arrangement uses an issuing carrier with reinsurance or other participation; the issuing carrier retains obligations and must manage retained, counterparty and operational exposures. Do not describe fronting as simply renting a licence with no risk. STABLE

Admitted versus surplus-lines treatment, rates/forms, placement duties and guaranty-fund treatment depend on the jurisdiction and product. VERIFY current requirements rather than assuming every new AI product belongs in E&S.

A capacity proposal can be assessed for team, distribution, controls, capital, wordings and loss expectations. A demonstrated loss improvement can be useful, but is not the sole reason an MGA exists or a guaranteed right to capacity. STABLE

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