3. Main classes of business written in the London market Flashcards
Explain Hull and yacht insurance
Physical loss or damage type insurance also known as first party or short-tail insurance
Explain builder’s risk insurance
Type of marine insurance covering ship construction.
Physical damage and liability cover
What are pecuniary insurances?
Monetary loss insurances
Money insurance - risk to valuable documents or money
Fidelity guarantee - fraud during the policy period
What are key construction insurances?
Contractors all risk (CAR)
Erection all risk (EAR)
What is bloodstock insurance and livestock insurance?
Bloodstock - horses / racehorses
Livestock - Other animals
Contingency insurance
event cancellation / weather related insurance / prize indemnity / death and disgrace and over-redemption
3 features of kidnap and ransom insurance
Payment of ransom
Payment of medical expenses for the captured person once release
Provision of a negotiation team
Types of aviation insurance
Physical damage
Aviation liabilities
Loss of license / loss of use insurance - replacement income stream, after a waiting period
Airport operators (premises, product, hangar keeper - liabilities)
Bordereau
Formatted spreadsheet on which risk and claim information can be presented to reinsurance - typical for treaty reinsurance
To cede
Sharing risk with reinsurer (cedant is original insurer)
Collecting note
The document use to present the claim to reinsurers under an excess of loss contract
Facultative reinsurance
Reinsurance for an individual risk
Non-proportional reinsurance
Reinsurance where the premium and claims do not have a direct correlation
Premium set more in line with a direct insurance
Known as vertical protection (excess of loss)
Proportional reinsurance
Premium and claims are shared between insurer and reinsurer in pre-agreed proportions
Reinstatement
Bring excess of loss ‘back to life’ through additional premium
Known as horizontal protection
Reinstatement premium
Price to reinstate or bring the layer back to life
Retrocedant
Reinsurer obtaining reinsurance
Retrocession
Cession where the entity ceding is already a reinsurer
Retrocessionaire
Reinsurer accepting reinsurance from an entity
Treaty reinsurance
Reinsurance for a portfolio of risks (class or whole book)
Over redemption
Over redemption of promotional materials (that would result in a loss)
Personal accident
Covers insured against accidental injury - benefits policy
Personal accident and illness / sickness
Personal accident + sudden onset illnesses
Contractors all risk (CAR)
Single insurance policy for all contractor risks in a large project - can be blended physical damage and liability
3 types of property insurance
Buildings
Machinery
Stock
Non marine liability
Directors and officers
Errors and omissions / professional indemnity / negligence
Public liability
Products liability
Employers liability
General liability - encompasses most of the above classes
Financial guarantee
Any contract of insurance where the insurers agrees on the occurrence of an event to pay out as agreed
- Financial failure
- Lack of support from financial supporters
- Changes in interest rates
- Changes in property values
- Changes in rates of exchange
Extortion / malicious tamper / contamination
Protects against
* Checking and removing potentially unsafe goods as soon
as possible.
* Maintaining brand image.
* Making sure that alternative goods are available for clients.
* Maintaining client confidence (which helps its brand image
as well).
Political Violence
- Terrorism
- Sabotage
- RSCC
- Malicious damage
- Insurrection
- Mutiny
- War / civil war
Aviation Physical damage
Physical damage to aircraft
Property insurance for airport buildings
Drone aerial vehicle insurance
Aviation liability
Airline liability insurance (3rd party non passenger)
Passenger liability
Airport operator liabilities - premises, hangar keepers, products
