Lloyds Flashcards
Syndicates
Syndicates are private individuals/corporate members who carry the risks (i.e. provide finanical backing). They employ a Managing Agent who’s responsible for employing an UW who may accept risks on behalf of the Syndicate.
Managing Agent
MA’s are employed by Syndicates and are responsible for employing an UW who may accept risks on behalf of the Syndicate. MA’s can manage one or more Syndicates and are dual regulated by the PRA and the FCA.
Members Agent
Members Agents advise their clients on investing in the Lloyds market. They also act as a communication channel between members and Managing Agents.
What are “boxes”?
UW’s and their staff sit on desks known as boxes
How are risks placed at Lloyds?
Risks are placed using a “slip” (Market reform contracts)
What does “scratching a slip” mean?
The process where Lloyds brokers approach UW’s who will then fill the slip with their signature for the shares they’re willing to accept.
What does “writing a line” mean?
When a number of Syndicates accept a share of the same risk - this is why Lloyds is known as a subscription market because of the practice of sharing risks
What does “Xchanging” mean?
Once a slip is fully placed the policy will be prepared, checked and signed - the organiation which carry out this process are known as Xchanging.
What was the impact of the Legislative Reform order 2008?
Lloyds generally becomes more open - non Lloyds brokers were now able to place risks at Lloyds
Who are the main providers in the London insurance market?
Insurance and reinsurance companies, Lloyds Syndicates, Lloyds service companies and P&I clubs
What does contract certainty mean?
Procedure designed to ensure all parties in a contract are fully aware of the coverage and terms of the policy before a risk is covered (originally developed as part of an intiative known as the London Market Principles).
What does “signed down lines” mean?
Where UW’s lines on a slip exceed 100%, the lines will be proportionately reduced by the broker until they total 100%.
“Line” just means the amount of risk the UW is willing to accept
