Insurance Broker's Letter has been recently published by the Loan Market Association (LMA)

An insurance broker’s letter is a common requirement of banks before they lend in real estate transactions. It is a statement provided by the borrower’s insurance broker confirming as at the date of the letter (amongst other things):

- that the borrower’s insurance policies comply with terms in the loan agreement,
- insurance is valid,
- insurance premiums are up to date,
- the broker has placed insurance on behalf of both the borrower and the lender (in most cases), and
- that the borrower has the usual insurance in place for its type of business.

Since the financial crisis ca. 2008, as more loan defaults have occurred, the insurance broker’s letter has become more heavily negotiated.

The letter published by the LMA provides a starting point for the form of this letter from which to negotiate from, filling a void that has existed since 2012 when the previous equivalent document was abandoned as it had become out of date given the financial climate.

It is hoped that this standard form will make agreeing the broker’s letter easier. In time we shall see the reaction of the market, and whether and to what extent the letter has achieved its purpose.

For further information, please contact Robert Calleja, Associate in the Banking and Finance team, on

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