9: Underwriters

Question 1

Definition: Competition law

Answer 1

When a following insurer agrees different terms to the leader, the leader can not then go back and amend their own terms.

As defined by BIPAR

Question 2

Definition: Following market underwriters

Answer 2

Underwriters who accept a portion of the risk, but are not the leader.

They can agree their own, different, terms - but the leader can not then upgrade their own terms to meet these alternative terms. This is defined as a concept called competition law by BIPAR (EU Fed of Insurance Intermediaries)

Question 3

Definition: Leader

Answer 3

The first underwriter who is approached by a broker.

Overall leader - the first UW on the slip
Slip leader - the leader (company) for the London Market portion of the risk - as the risk might not originate in the LM)
Bureau leader - the first Lloyds UW on a slip

Question 4

Definition: Multiple placements

Answer 4

The situation where following insurers have different terms and conditions to the leader. The following insurer then becomes a leader for any following insurers who agree the same terms

Question 5

Definition: Subscription market

Answer 5

More than one insurer is involved in the risk

Question 6

Definition: Scratch

Answer 6

A combination of initials and date used to indicate an UW has seen the presentation made

Question 7

Definition: Underwriter

Answer 7

The person who makes the decision on behalf of an insurer whether to accept any risk presented

Question 8

What are the main functions of an underwriter?

Answer 8

Assess the risk
Decide whether to accept the risk, and how much to accept
Determine the T&Cs
Calculate an appropriate premium