Category: Lloyd's market · Reviewed by Mark Fox, Broker · Renewals · Last reviewed 2026-06-05
A Lloyd’s slip is the contract document used in the London market to place insurance and reinsurance business with subscribing underwriters. Originally a single sheet of paper passed from underwriter to underwriter, the modern slip is the Market Reform Contract (MRC) in electronic form, used as the contractual basis of London market placement.
Category: Lloyd’s market Also known as: slip, placing slip Related concepts: Market Reform Contract, MRC slip, box at Lloyd’s
The slip sets out the principal terms of the cover: the insured, the cover type, the period, the sum insured or limit, the deductible/retention, the premium, the territorial scope, the warranties and conditions, the choice of law and jurisdiction, the brokerage and other distribution terms, and the names of subscribing underwriters with their respective lines (proportionate shares of the placement).
In traditional practice the slip was a single piece of paper that the broker presented in sequence to each underwriter; the lead underwriter signed and stamped their line, and the broker then took the slip to following underwriters. The modern slip is the Market Reform Contract document, signed electronically via PPL.
The slip is the principal contractual document of the London insurance and reinsurance market. The ‘contract certainty’ code introduced by the FSA in 2007 requires that the slip is complete in all material terms before inception. The Insurance Act 2015 governs the duty of fair presentation and provides a remedies regime for inaccurate presentation.
The slip remains the working contract document for most London market placements. Following placement, the slip is processed through the Lloyd’s bureau and central settlement systems for premium and claims accounting. The wording (the policy) typically reflects the slip terms with detailed legal provisions.
PPL has progressively dematerialised the placement process, with electronic slip placement now mandatory for the majority of Lloyd’s classes. The contractual content of the slip — and the legal effect — is unchanged by the move to electronic placement.
An illustrative example: a £25m industrial property risk slip is placed in the London market via PPL. The lead Lloyd’s syndicate signs a 25 per cent line. Five following Lloyd’s syndicates and four company market reinsurers complete the placement at 100 per cent. The slip is then processed through Velonetic (Lloyd’s central market services) for premium settlement and claims tagging.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
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