Lloyd's Market Flashcards
Who is Lloyd’s regulated by?
Lloyd’s Council are regulated by PRA & FCA – responsible for the management and supervision of the market.
Do Lloyd’s have a separate code of conduct?
Lloyd’s no longer has its own separate code of conduct for Lloyd’s brokers – relies instead on the FCA rules for authorised persons.
Who are MGA’s regulated by?
PRA and FCA
How do Lloyd’s syndicates operate?
Each Lloyd’s syndicate employs an MGA to manage underwriting
How much risk comes from the UK?
Lloyd’s accepts risks from more than 200 countries worldwide – only 18% risks come from within the UK
Who do Lloyd’s broker need to satisfy?
Lloyd’s brokers must satisfy Council of Lloyd’s as to their expertise, integrity and financial standing
How does a broker access the Lloyd’s market NOT via direct routing procedures?
Via a Wholesale broker, and the originating broker, a sub-broker, or producing broker.
What are the methods of transacting business at Lloyd’s?
Face-to-face between broker and the underwriter, through the use of a delegated authority and through business set up outside of Lloyd’s by syndicates.
What is a Market Reform Contract?
Broker submission prepared and presented on a standard form known as a ‘slip’.
Are Lloyd’s brokers agents of clients?
Yes - the differences being the market in which they operate; their methods of transacting business; many of the risks they place.
