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a 'lead' from the leading underwriter on behalf
of his syndicate, and approaches other
syndicates for completion of slip and absorption
of entire placement. A syndicate's account may
include direct insurance, facultative reinsurance
and XL covers from various countries. Some
members of Lloyd's buy 'stop loss covers' to
limit potential losses.

b. The London Company Market comprises
i. direct companies accepting inward insurance
business. In this market, dealing with a broker
is not compulsory as in the case of Lloyd's
market.

ii. Underwriting agents writing business on
behalf of other companies. The advantage is
that a direct writing company may lack
reinsurance business skills, may not be familiar
with local conditions and have to incur high
costs for reaching overseas offices for doing
reinsurances. They can enter into an
agreement with established underwriting

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