Chapter 1 Flashcards
(14 cards)
What does the subscription market mean?
More than one insurer can participate in any one risk
Are there restrictions on the combinations of insurers in the subscription market?
No restrictions on the combinations of Lloyd’s and companies, or London Market and overseas markets
What factors can influence whether business comes into London?
Broker and client loyalty, experience, and permissions
What factors influence whether insurers can write 100% of any one risk?
Capacity, branch office controls, aggregates, broker/client influence, and licensing
What is the international nature of the London Market?
It concerns both the origin of the insurers and the origin of the risks
What percentage of the business written in Lloyd’s is made up of UK risks?
About 12%
What percentage of the IUA company market business is made up of UK risks?
55%
What must London Market insurers often obtain to write risks in other countries?
Permission
How does Lloyd’s obtain permissions or licenses for writing risks?
Lloyd’s obtains them centrally
How do insurance companies obtain permissions or licenses for writing risks?
They have to apply individually
What are some appeals of the London Market?
High quality of brokers, good reputation, and brand
What specific knowledge does the London Market possess?
Capacity and knowledge for unusual risks
What is the reputation of the London Market regarding flexibility?
Reputation for being flexible in its thinking
How does Lloyd’s access business around the world?
By using the licensing system
