London market structure Flashcards
organisation that represent international and wholesale re/insurance but has no control over the activities of its members
International Underwriting Association of London (IUA)
provides representation, info and technical service to underwriting businesses in Lloyd’s market
Lloyd’s Market Association (LMA)
one who is actively working in the Lloyd’s Market either for a broker
or for a managing agent, or did so immediately before retirement. These members have to be members of the Society of Lloyd’s, i.e. provide capital for the market
a working member
one who is a member of the Society of Lloyd’s (i.e. provider of capital) but does not fulfil the criteria for a working member
external member
not a member of the Society and capital provider but comes from outside the market
nominated member
the entity responsible for the management and supervision of the Lloyd’s Market
The Council of Lloyd’s
the groups of private individuals or corporate investors who carry the risks
(i.e. they provide the financial backing)
Syndicates (underwriting members or Names)
How long does a syndicate exist to accept risks?
One year (but books remain open for another 24 months)
Term referring to the reinsurance of outstanding liabilities with the syndicate’s next year of account
Reinsurance to Close (RITC)
investors in the Lloyd’s Market who are also
commercial organisations in their own right
Corporate capital
If a Lloyd’s Name feels that they have been badly advised concerning their
participation in a particular syndicate, about whose advice will they complain?
The member’s agent
groups of like-minded customers who pool together to create their own insurance pool and organise professional managers to run the businesses
Mutual Indemnity associations
these are owned by the policyholders and generally serve a specific interest
group
mutual companies
these are insurance companies who are solely insuring risks from sister
companies in the same group
Captive insurers
entity which appoints the underwriters who may accept risks on behalf of the syndicate
Managing agent
an organisation which has been given authority on behalf of an insurer to undertake a number of different tasks such as accepting risks, issuing
documents or handling claims.
Managing general agent (MGA)
not a LM body specifically but some insurance companies with LM operations are members. It’s role encourage understanding and inform debate and support competitiveness in the insurance market
Association of British Insurers (ABI)
trade association for insurance intermediaries, including brokers
British Insurance Brokers’ Association (BIBA)
entity that maintains a lobbying role and to represent the sector to the UK regulators, Europe, the UK Government and other stakeholders. It aims to work with other London Market bodies, including LIIBA, on areas of mutual interest and to avoid duplication of work
London Market Regional Committee (LMRC)
an independent trade body, representing the interests of insurance and reinsurance brokers operating in the London and international markets
London and International Insurance Brokers’ Association (LIIBA)
provides specific representation on behalf of MGAs in the insurance market
Managing General Agents Association (MGAA)
This is achieved by the complete and final agreement of all terms between
the insured and the insurer by the time that they enter into the contract, with contract documentation provided promptly thereafter.
Contract certainty
Reasons for coming to London Market
- large capacity
- subscription market where risks are shared
- history and knowledge in the market
- market provides good claims service
