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Insurer Selection

Insurance Companies

Obviously, as professionals, we need to concern ourselves with the financial stability and capacity of the insurers with whom we place our clients’ business. Insurers have the same concerns when taking part in a co-insurance placement, putting together their re-insurance arrangements and, indeed, considering their dealings with intermediaries.

For this purpose, it will be relevant to consider the credit rating, claims paying ability and financial reports of insurers.

Our Compliance Manager will be responsible for monitoring insurer security including any sub-broking arrangements.

Underwriting Agencies

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.

Overseas Placements

If our client’s insurance is to be placed offshore we take care to always check the security of the ‘non-resident’ insurers.

Lloyd’s and ‘Lloyd’s underwriters are considered ‘authorised’ under the Insurance Act 1973.

If we are in any doubt, we do not place the business.

Unauthorised Foreign Insurers

It is our company policy that White Insurance Brokers will not, under any circumstances, place any client or client’s insurance programme in full or in part with any unauthorised foreign insurer.

The following pages provide an overview of these.