Category: Lloyd's market · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-05
The Lloyd’s Policy Signing Office (LPSO), succeeded by Xchanging Ins-sure Services and now operated by Velonetic, is the central bureau service that processes Lloyd’s slips into formal policies and operates the central market settlement systems for premium and claims. It provides the operational infrastructure underpinning subscription-market placement.
Category: Lloyd’s market Also known as: LPSO, Velonetic policy signing, central settlement bureau Related concepts: Lloyd’s slip, Market Reform Contract, XCS Xchanging Claims Services
LPSO was the historical Lloyd’s office that signed and processed policies after placement. In the early 2000s its activities were transferred to Ins-sure Services and then to Xchanging (now LMS group / Velonetic). The contemporary central bureau is operated jointly by Lloyd’s and the International Underwriting Association (IUA) and processes premium and claims for both Lloyd’s syndicates and the company market.
The central bureau receives the signed slip, allocates a unique market reference, calculates the gross and net premium splits between subscribing syndicates and other carriers, and processes the settlement through the London Market Premium and Claims Account.
The bureau operates under the joint Lloyd’s/IUA market services framework and is subject to FCA supervision in respect of client money and conduct of business under CASS and SUP. The PRA Insurance Rulebook governs the prudential treatment of bureau settlements for Lloyd’s syndicates.
In modern practice the slip is processed via PPL (placement) and Velonetic (settlement and policy production). The bureau allocates unique market references, processes premium credit advice notes (PCANs), prepares the central settlement file and produces signed line slips and policies for the underwriting market.
Premium is settled through the London Market Premium and Claims Account (London Bureau Bank account), with the broker collecting premium from the insured and transmitting net premium to the bureau for distribution to carriers. Claims are processed similarly: the broker submits the claim, the lead underwriter agrees, and the bureau processes the settlement across the subscribing market.
An illustrative example: a £25m London market property slip is placed via PPL with twelve subscribing carriers. Velonetic allocates a unique market reference, generates a signing slip showing each carrier’s signed line, and processes the premium of £1.5m through the central settlement system, distributing the appropriate share to each carrier.
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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