Lloyd's underwriters are entitled to access placing and claims documents held by brokers and which they have already been shown, the Court of Appeal has ruled.
In an important legal decision, the Court overturned a Commercial Court ruling which decided that Lloyd's underwriters were entitled to receive from the brokers' files, only accounting documents relevant to the risk underwritten at Lloyd's, but had refused insurers access to the placing and claim files.
The appeal was brought by Goshawk in relation to documents held by Tyser. Lloyd's intervened in the appeal.
The earlier Commercial Court ruling had caused some concern in the market for both the pre and post 2001 periods when Terms of Business Agreements (Tobas) were entered into between Lloyd's brokers and underwriters for the first time.
Ken Randall, of Cavell Managing Agency, responsible for the run off of Goshawk, said: “The decision will give important guidance to the market on access to brokers' files, and confirm what most in the market have believed to have been the custom and practice for over 300 years.”
Lloyd's head of advisory Peter Spires said: “Lloyd's welcomes the Court of Appeal's judgment which confirms that underwriters are entitled to access placing and claims documents previously shown to them by Lloyd's brokers.
“We intervened in the appeal because important issues were at stake which affected the market. Today's decision gives the market clarity on those issues.”
Jonathan Sacher, a partner at Berwin Leighton Paisner, who acted for Goshawk on the successful appeal said: “The decision confirms what is implied in the trusting relationship which has existed for decades between brokers and underwriters.
"It has always been the practice of the market that brokers will retain copies of the documents shown to underwriters. Those documents will now continue to be available to underwriters, when required.”
