Lloyd's underwriters see pressure mounting.From the point of view of Lloyd's Lloyd's, London insurance underwriting corporation of many separate syndicates; often called Lloyd's of London. Founded in the late 17th cent. by a group of merchants, shipowners, and insurance brokers at the coffeehouse of Edward Lloyd, the association is now underwriters, the landscape in commercial property/casualty underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. is changing in fundamental ways, with risk managers, many of whom now are finding themselves in higher-profile positions within their companies, pushing for more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms on pricing and broker compensation. Lloyd's underwriters, eager to share their views of the commercial market in 2005, held a round-table discussion on current trends at the Risk and Insurance Management Society Risk and Insurance Management Society, Inc. (RIMS), founded in 1950, is a membership-based industry trade group, representing nearly 4,000 industrial, service, nonprofit, charitable, and governmental entities and serves more than 10,000 risk management professionals around the Inc.'s annual conference in Philadelphia. The panel said that, while Lloyd's underwriters are holding the line on pricing discipline in a market with growing soft spots, risk managers are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. more favorable terms. And pressure from risk managers for more transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. from brokers will change the broker's business in fundamental ways, they said--a key concern for Lloyd's, a broker-driven market. At the same time, Lloyd's released a survey of the market's underwriters, which showed that 84% see pricing as the main concern among buyers. "Our experience with brokers today is that they are a much more sophisticated animal than in the past," said Neil Bolton, head of the technology underwriting division at Hiseox plc. "Risk managers are much more familiar with their organizations than they used to be. They traditionally hadn't had much contact with their legal departments, but that is changing." Conor Finn, managing director for the nonmarine property division at Markel International, said risk managers have a much higher profile within their organizations, in part because the cost of insurance has gone up dramatically in the past four or five years. |
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