Category: Claims handling · Reviewed by Amy Price, Account Executive · Last reviewed 2026-06-11
Slip-policy claims are claims on policies placed at Lloyd’s or in the London Market through a “slip” — the contract document showing the placement, the participating insurers and their shares — and handled through the leader-follower model.
The slip is the contract of insurance in the London Market. It records the policy terms, the insureds, the period, the limit, the deductible and (critically) the participating insurers with their declared shares. A complex risk may be placed across 20 or more syndicates and company-market participants, each declaring a percentage of the cover.
Slip-policy claims are handled under the Lloyd’s Claim Scheme (for Lloyd’s slips) or under analogous conventions for company-market slips. The leader takes the central role; followers participate through the bureau infrastructure.
The framework includes:
The slip is the operational source of authority and terms. The follower is bound by the slip and the Scheme, not by a separate contract with the policyholder.
A slip-policy claim runs as a Lloyd’s Claim Scheme claim through the bureau systems. The mechanics are similar across all slip-placed business; the variations come in the underlying coverage class, the leader’s expertise and the specific slip terms.
The slip’s “subscription” structure is critical: each participating insurer declares a percentage line. The leader has the largest line typically; followers participate in proportion to their lines. Each insurer’s liability is its declared share — there is no joint liability between participants (subject to the Scheme’s rules on agreement and settlement).
For aggregation, the slip’s wording determines whether claims aggregate. For Lloyd’s reinsurance, the cession to retrocessionaires is governed by the slip’s reinsurance arrangements (often separate from the underlying primary slip).
The slip-policy claim’s main distinctive feature is the subscription accounting. A £4m claim on a slip with the structure:
produces:
Total £4m. Each insurer’s payment is recorded in its own accounts and processed through the bureau.
“Single-class slip” — covering one class of business (property, marine, aviation).
“Multi-class slip” — covering multiple classes for a single insured.
“Layered slip” — primary plus excess layers within a single slip document or a tower of related slips.
“Worldwide slip” — covering the insured’s global operations.
“Annual slip” — renewable each year with revised participation.
“Multi-year slip” — for long-tail business with fixed multi-year participation.
A Lloyd’s slip for a manufacturer’s combined general liability cover has:
A product-liability claim of $4.8m is notified. Above SCAP ($1m for this slip). Syndicate X handles substantively; Syndicate Y agrees the settlement decisions. Bureau processes the settlement at $4.2m at month 11.
Each insurer’s share:
Bureau processes payments to the broker’s client account; broker remits to the claimant via the policyholder. Total claim cost $4.2m + $480,000 of defence costs and ALAE. Each insurer’s share recorded in its own claims system and reflected in management information.
By Matt Bartlett, Director, on 2026-06-11. Next review: 2026-12-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote