Insurance Market Glossary 

New to the insurance market, or just need a refresher? The industry is full of jargon and complex language, find out the meaning of insurance terms here. 

Image by Henry Be
Managing agent (MA)
Managing general agent (MGA)
Delegated Authority
The Lloyd's Market Association (LMA) 
Loss Run


An insurer based in Lloyds of London. Loss adjuster - A party hired by the insurer to investigate the claim and see how much the payout should be.

A third-party administrator. They are provided with the authority to handle a claim from an insurer. The TPA will have a specialised area of knowledge for example commercial storage insurance.


An organisation which manages a Lloyd syndicate. They employ underwriters to determine the risk that the syndicate insures.


They have underwriting authority to underwrite risk on behalf of an insurer usually under a binding authority. Same as a coverholder.


Placing package produced by the broker with all the important information such as risk, insurance terms and conditions that which he submits to the underwriter at Lloyd's London or company market carrier. Each carrier takes a percentage of the slip until it is complete.


A term for an insurance company or Lloyd’s syndicate. They are the company behind the policy issuers who ultimately charges premiums and pay claims under their policies.

A Coverholder is an MGA that is approved to do Lloyd's business.


Is the individual who sells the policy and deals directly with the customer.



A binder is the contract that covers the selling of insurance policies under a delegated authority arrangement. 


Work for a carrier(s) and determines whether to insure/underwrite a risk and under what terms.

Delegated authority involves the transfer of underwriting and claims handling to third parties such as coverholders or third-party administrators on behalf of insurers if it is considered to be more practical or cost-effective to do so.


London International Insurance Brokers Association.

A report showing all claims, reserves and payments for a contract over a given period.

Lloyds of London is the oldest insurance company in the world. What makes Lloyd’s unique is the that they operate via syndicates who speciliase in different areas of insurance. Imagine the syndicates as storeholders who each take on a different % of risk.  Lloyd's Corporation is a separate identity who are not an insurer themselves but act as a regulator. 

The LMA is essentially a union for the market. All Lloyd's managing agencies and members agents are members of the LMA. They act in the best interests of their members in relation to organisations such as governments, regulators and the corporation of Lloyd's itself. They work to identify and resolve issues in the market and work in partnership with Lloyd's and other market associations offering their expertise from policy wording to implementation of new technologies. (See figure 1).

LIRMA is the London International Insurance and Reinsurance Market Association.



The Institute of London Underwriters was set up as the trade association for insurance companies writing Marine, Aviation and Transport. 

The IUA was formed as a merger between LIRMA and the ILU in 1998 to bring together representative bodies for the marine and non-marine sectors of the London company insurance market.

Reinsurance is when several insurance companies share risk by buying policies from other insurers i.e they insure themselves to limit their loss in the case of a disaster. Otherwise large catastrophies would require large payouts bankrupting insurers. 


Figure 1: The Lloyd's market

The Lloyd's Market  
The Lloyd's market.png