London market structure

Question 1

organisation that represent international and wholesale re/insurance but has no control over the activities of its members

Answer 1

International Underwriting Association of London (IUA)

Question 2

provides representation, info and technical service to underwriting businesses in Lloyd’s market

Answer 2

Lloyd’s Market Association (LMA)

Question 3

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

Answer 3

a working member

Question 4

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

Answer 4

external member

Question 5

not a member of the Society and capital provider but comes from outside the market

Answer 5

nominated member

Question 6

the entity responsible for the management and supervision of the Lloyd’s Market

Answer 6

The Council of Lloyd’s

Question 7

the groups of private individuals or corporate investors who carry the risks
(i.e. they provide the financial backing)

Answer 7

Syndicates (underwriting members or Names)

Question 8

How long does a syndicate exist to accept risks?

Answer 8

One year (but books remain open for another 24 months)

Question 9

Term referring to the reinsurance of outstanding liabilities with the syndicate’s next year of account

Answer 9

Reinsurance to Close (RITC)

Question 10

investors in the Lloyd’s Market who are also

commercial organisations in their own right

Answer 10

Corporate capital

Question 11

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?

Answer 11

The member’s agent

Question 12

groups of like-minded customers who pool together to create their own insurance pool and organise professional managers to run the businesses

Answer 12

Mutual Indemnity associations

Question 13

these are owned by the policyholders and generally serve a specific interest
group

Answer 13

mutual companies

Question 14

these are insurance companies who are solely insuring risks from sister
companies in the same group

Answer 14

Captive insurers

Question 15

entity which appoints the underwriters who may accept risks on behalf of the syndicate

Answer 15

Managing agent

Question 16

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.

Answer 16

Managing general agent (MGA)

Question 17

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

Answer 17

Association of British Insurers (ABI)

Question 18

trade association for insurance intermediaries, including brokers

Answer 18

British Insurance Brokers’ Association (BIBA)

Question 19

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

Answer 19

London Market Regional Committee (LMRC)

Question 20

an independent trade body, representing the interests of insurance and reinsurance brokers operating in the London and international markets

Answer 20

London and International Insurance Brokers’ Association (LIIBA)

Question 21

provides specific representation on behalf of MGAs in the insurance market

Answer 21

Managing General Agents Association (MGAA)

Question 22

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.

Answer 22

Contract certainty

Question 23

Reasons for coming to London Market

Answer 23

• large capacity
• subscription market where risks are shared
• history and knowledge in the market
• market provides good claims service