Who Is an Insurance Syndicate?

A syndicate refers to a group or association of individuals or businesses with a common purpose. An insurance syndicate in particular is an association of insurance companies targeting the same customer base.

Identification

The individual companies of an insurance syndicate are known as "subscribers." They generally elect a governing board and officers to oversee and conduct business for the group. The syndicate works as a go-between for those seeking insurance coverage and those willing to underwrite the coverage.

Features

Insurance syndicates are often made up of subscribers that issue policies and companies that reinsure the issuer's risks. In other words, they provide insurance for the insurance company.

U.S. Insurance Syndicate

One well-known international insurance syndicate, based in the U.S., is the American Hull Insurance Syndicate, in existence since 1920. Its main focus is to underwrite marine insurance policies.

Syndicate Group

Internationally recognized Lloyd's of London comprises more than 150 insurance syndicates, which are in turn made up of many underwriters. Lloyd's is the supervisory head of the group.

References

• "Encarta Encyclopedia Standard Edition 2004"; Microsoft Corporation; 2004
• State of New York: Examination Report - Financial - American Hull Insurance Syndicate
• "The Oxford Companion to United States History"; Paul S. Boyer, editor; 2001