The Aviation Hull War Committee, subcommittee to the Aviation Committee, has requested that given the situation in the wider Gulf region, aviation underwriters be reminded of the need for slip leaders to consider their obligations to following insurers. In particular, leaders should require brokers to communicate the following to all following markets:

(a) any proposed cancellation or change to terms being proposed by the lead;
(b) any notice of cancellation issued by the leader; and
(c) any information requested by and provided to the leader;

so that following insurers have sufficient information to consider their own position.

This requirement applies even where the slip leader is authorised to issue notice on behalf of following insurers.

The Aviation Hull War Committee would also like to remind underwriters that it has issued a new Middle East War Memorandum, LMA5703, for use alongside LSW555D. The memorandum is not a clause designed to be endorsed onto policies. Rather it reiterates that LSW555D requires Assureds to give immediate notice of any “material change”, and clarifies the situations (in the current context) which underwriters would consider a material change.

As it is not a clause, the memorandum does not amend existing policy terms and is available via the Lloyd’s Wordings Repository (LWR).

Dele Fajimolu
Senior Executive, Technical Underwriting
dele.fajimolu@lmalloyds.com