The Mechanism
Negotiating the risk:
- In order to determine terms and conditions of the policy, Johnson & Higgins met with various Lloyd's syndicates who lead in the professional liability field: Beazley, Brockbank, Cottrell, Agnew and Burnhope.
- The risk was discusssed until an agreement was reached and one of the lead underwriter's share of the risk was entered onto the placing slip. Negotiations with support syndicates were initiated until the lead underwriter's terms were fully supportable and 100% of the risk placed.