C5 Flashcards
What is the LMA
Lloyds market association
Provides technical services and info to the market and resolves market wide issues. Provides access to a database of policy wordings
What is the IUA
International underwriting association
Representative for international and wholesale insurance and reinsurance companies. It has no control over the activities of its member organisations but instead looks to uphold standards and strengthen the market place and its reputation
ABI
Association of British insurers
Acts as a voice if the UK insurance market and represents the interests of the industry to the UK government
BIBA
British Insurance Brokers Association
Major trade body for the professionals conduct of insurance intermediaries. Strives to protect interests of brokers by influencing the decision makers and policy writers that affect the sector
LIIBA
London and international insurance brokers association
Deal on a global basis with a view to representing members interests and modernising the marketplace
MGAA
Managing general agents association
Drive best practice and represent MGAs within the industry
Who is the london market made up from
Insurance companies
Reinsurance companies
Lloyds syndicates
Protection indemnity clubs
What is the company market
Companies that operate outside of Lloyds. They are authorised by the PRA in relation to their capital levels and the FCA in relation to their conduct of business issues. The IUA oversees this market
What is a limited liability company
Owned by their shareholders eve aviva and RSA
What are mutual company’s
Owned by their policy holders such as NFU mutual (the National farmers union)
What are mutual indemnity associations
Where customers collectively create and manage their own insurance pool most prominent in marine insurance with protection and indemnity associations or PNI clubs
What are captive insurers
Non parent subsidiary companies that insure the risks of their parent company or companies within the same group
Can be set up in tax efficient regions
Can offer access to the reinsurance market
What are Names of Lloyds/ Lloyds members
Investors that put capital into Lloyds market
They are corporate names with limited liability
What are syndicates
A group of Names
A member can be introduced to a syndicate by a members agent
Syndicates carry the risk and last for a year at a time
Are identified by a unique name and pseudonym eg Hiscox is syndicate 33
What are managing agents
Entities that the syndicate appoints to do the day to day functions such as underwriting claims hr and IT.
Hiscox is the managing agent for syndicate 33
Regulated by the PRA and FCA
Descibe syndicates accounts
Stay open for one year
Books stay open for 24 months after to allow claims to come through for the risks written in that year then the books are closed and determine how the year has performed
What is RITC
Reinsurance to close
There may be outstanding liability which the syndicate can reinsure the next year of account and can declare a profit or loss on the previous year
What is MGA
Managing general agents
An organisation that has been given authority by an insurer or many insurer to carry out a number of tasks on their behalf. Ranging from accepting risks, issuing documents or handling claims. Can be internationally based
Does the risk lie with the MGAs or the insurers
Insurers
What is a binding authority/binder
Type of authority given to MGAs
What is contract certainty
The full and final agreement of all terms and making sure documentation is issued promptly after
What is an MRC
Market reform contract
The MRC is a document used in the London Market to summarise the terms and conditions of a risk being placed, ensuring clarity and standardisation.
