Underwriters Flashcards
Underwriter responsibilities
Make decisions on behalf of the insurer whether or not to accept a risk
Detemines the t+cs on which they accept
Specialise in a CoB
In lloyd’s market they are employed by a managing agent
Functions of an underwriter
Assess the risks presented to the pool
determine whether or not to accept the risk and how much of it
Determine T+Cs
Calculate appropriate premium
Reasons for writing in a subscription market / A proportion of a risk
Size of risk and authority levels
Balancing a portfolio
Insurance broker input (broker request)
New CoB
What happens when an overseas market is involved in a subscription market placement with LM insurers?
The risk is partially placed in their home market and the rest of the balance presented to LM
Role of a leader in subscription market
Review risk presentation of the broker
Consider whether or not to accept it
Decide T+Cs
Quote a premium
What makes a good lead underwriter
Provide good quotations
Credible and supportable for the follow market
Role of the follow market
Create a separate distinct contract of insurance between insurer and insured
Request premium
If a risk is popular the broker may opt to not use fussy UWs
if a risk is unpopular, the broker may need to ask Uws to take a larger share
European federation of Insurance intermediaries (BIPAR) principles
Intermediary specifies demands of clients with reasoning
Broker will advise client of market structures available
If Client chooses Multiple insurer, broker must review and explain relevant benefits
Intermediary should not accept a condition where an insurer seeks to reserve itself the right to increase their premium
Broker will keep client informed of progress
What happens if there are multiple placements
Broker must prepare and present multiple sets of information to XIS
Overall leader of a contract
Could be overseas even in an LM policy
Broker/intermediary will advise underwriters of the terms set
Slip Leader
May not agree with overseas T+Cs
Can lead the London market slip instead
Bureau leader
If slip lead is from a company, the first lloyd’s underwriter on the slip
Slip leader would be the bureau leader for the company market
General Underwriters Agreement
Part 1: Non-material changes which will be agreed with leader only
Part 2: Anything not in part 1 or 3 generally which is leader and some agreement parties
Part 3: Material changes which should be agreed with everyone
Identifying agreement parties for claims
Built-in claims handling agreements streamline process in london market
insurers cant add themselves automatically
