Chapter 5- Structure of LM Flashcards
The 3 parts of Lloyds
Corporation- management and international relations, structure
Council- 18 members, management, byelaws
Franchise board - risk and profits, new members
Members of the council
6 external- capital provider
6 nominated- non society but provides capital e.g. Director
6 working- broker or MA
Syndicates
Private individuals and investors
Name indicates managing agent, appoints underwriter
Exists for year, 2 years to close. Reinsurance to close.
Reinsurance of previous syndicate
Equitas
Reconstruction and renewal
All 1992 accounts reinsured into Equitas
Members agents
Bridge between managing agent and members (capital providers)
Difference between company market and Lloyds
Closest equivalent is the London underwriting centre
PRA regulates solvency, FCA regulates conduct
Individual companies need own international regulations
4 types of companies
Limited liability
Mutual indemnity companies- groups pool together
Mutual companies- owned by policyholder, specific interest
Captive insurers- insurer from sister company in same group
Service company
Syndicate authorises company to write business on its behalf
Legislative reform order 2008
Removed that only Lloyds brokers can place through Lloyds
Lloyds market association
Representation, information and technical services to businesses
5 COB specific business form it
All managing and members agents
International underwriting association of London
Linked to London underwriting centre
Protect and strengthen market
Merger of institute of London underwriters and London insurance and reinsurance market association
Efficiency and business attraction
Association of British insurers
Research and stats to government
General, life pensions, finances, taxation, investment
British insurance brokers association
Promoting
Influencing
Maintaining
Supporting
London market regional committee
Lobbying role to represent the sector to regulators and stakeholders
London and international insurance brokers association LIIBA
Independent trade body Promotes London by transforming market process Modernisation Strengthens relationships Represents to government