Before placing cover with an underwriting agency we must be satisfied about the claims paying ability and reputation of the underlying security in the same way as if the business was placed directly with an insurer.

In particular, we carefully check whether any foreign unauthorised insurers are on the underwriting agency’s slip and if so, take appropriate risk management steps.

We also consider any conflicts of interest that could arise because there are related parties capable of influencing the advice or recommendation to purchase insurance, e.g. a brokerage that also owns an underwriting agency or has shared directors or shareholdings.