Question

What was the capital structure of underwriters at Lloyd's traditionally like?

a.

They had permanent capital

b.

Each syndicate had temporary capital recreated annually

c.

They obtained capital through reinsurance

d.

Their capital was bought out through mergers

Answer: (b).Each syndicate had temporary capital recreated annually Explanation:Underwriters at Lloyd's supplied no permanent capital, with each syndicate being recreated at the start of every year.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What was the capital structure of underwriters at Lloyd's traditionally like?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is a challenge faced by conventional insurance insurers in a soft market?

Q. What has been the impact of consolidation in the insurance sector on the demand for annual reinsurance?

Q. What is the trend observed in the volume of alternative risk financing programs?

Q. What focus will successful companies in the insurance industry have?

Q. What has become an inadequate option for reinsurers due to the availability of cheap capacity in the catastrophe reinsurance market?

Q. What has become an inadequate option for reinsurers due to the availability of cheap capacity in the catastrophe reinsurance market?What has compelled intermediaries in the reinsurance market to identify new ways and opportunities for business?

Q. Which of the following is NOT a new or enhanced product/service that brokers have turned to in order to attract new clients?

Q. Why do smaller independent reinsurance brokers find it challenging to keep up financially?

Q. What is the main reason for the establishment of subsidiaries by certain companies involved in reinsurance?

Q. Which region has its own well-developed reinsurance market, where the professional reinsurers generally do not operate?

Q. How do the majority of professional reinsurance companies operate in relation to their parent insurers?

Q. How do specialist reinsurers typically accept business from ceding companies?

Q. What is the strategic approach of GIC Re in expanding its presence in the reinsurance market?

Q. Which regions does GIC Re primarily target for inward overseas reinsurance premium?

Q. What is GIC Re's objective regarding the proportion of domestic to overseas inward reinsurance business?

Q. How does GIC Re handle the obligatory cessions received from non-life insurers in India?

Q. How do underwriting agencies in the London market operate?

Q. What is the primary reason for captive companies to broaden their sphere of activities?

Q. Where are the majority of captive insurers located?

Q. Which of the following is not usually a location for captive insurers?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!