In recent years, the transactional liability (TL) market has seen significant growth and development, particularly in response to large claims activity, more sophisticated deal structures and a broader appetite for emerging risks. Recognising the need for a structured forum for discussion, knowledge sharing and collaboration within the Lloyd’s market, the LMA established a dedicated Transactional Liability Interest Group to provide managing agents with consistent access to expertise and market insight.
The group will be focusing on delivering training sessions, educational briefings and workshops to equip underwriters with the knowledge and tools needed to navigate the complexities of emerging risks, such as contingent liabilities, asset valuation and legal fee structures, while also working to address technical queries and issues across the market.
Given the significant role played by London market insurers and MGAs in writing TL business, the group also works closely with the International Underwriting Association (IUA) to ensure alignment across the wider market. Joint future efforts will include educational briefings, development of best practice and addressing wider industry issues as they arise.
One of the LMA TL Interest Group’s most significant initiatives has been working with Lloyd’s to introduce more granular risk codes for TL business. Six new codes, developed in consultation with LMA interest group members and the IUA, have now been finalised and formally announced to the market. They will come into effect from 01 January 2026.
The decision to introduce these codes now reflects the expectation of future growth in the class and the unique, non-renewable nature of the risks written. By creating a more detailed framework for oversight at this stage, the market will be better equipped to analyse exposures, track claims development and enhance overall performance monitoring in the years ahead.
The updated risk code structure includes both re-purposed and entirely new codes:
These changes aim to provide underwriters with improved visibility of the different segments within TL, supporting more accurate pricing, better-informed underwriting decisions and deeper insight into product performance across the market.
If you are a Lloyd’s managing agent interested in participating in the Transactional Liability Interest Group, or if you would like to learn more about its activities, please contact katie.clark@lmalloyds.com.
