Terms of Business Agreement (TOBA)

A Terms of Business Agreement (TOBA) is a contract that defines the terms on which one party provides services to another party, typically covering responsibilities, authority, remuneration, and regulatory obligations. In the insurance ecosystem, TOBAs are used at multiple points in the distribution chain, including between brokers and clients, brokers and insurers, and other intermediaries, to govern how insurance business is conducted.

In the context of Lloyd’s of London, TOBAs underpin the relationships between market participants, particularly brokers (who act as intermediaries) and insurers or managing agents, within the Lloyd’s marketplace where business is transacted through a network of specialized roles rather than a single insurer. Read more in this article.