1. Business nature of the London market Flashcards
1
Q
Reasons an insurer won’t take 100% of a risk
A
Capacity
Branch office controls
Aggregates
Broker influence
Licensing
Client influence
Availability of reinsurance
Geographical limitations
2
Q
Why might risks be placed outside of London market?
A
Location of insured
Culture, local knowledge, relationships
Experienced insurers
Claims service
3
Q
Proprietary companies
A
Owned by shareholders
Limited liability
4
Q
Mutual companies
A
Companies owned by their policyholders
Liability usually limited to premium
5
Q
Captives
A
Authorised insurance company owned by a non-insurance parent company
Often offshore for tax reasons
6
Q
Mutual indemnity associations
A
Owned by policyholders but have origins in members grouping
7
Q
Lloyd’s service companies
A
Set up solely to write business on behalf of a syndicate
8
Q
A
