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📏 '''Line''' is a term with multiple meanings in insurance, but at its most fundamental it refers to the portion of risk that an [[Definition:Underwriter | underwriter]] or [[Definition:Insurance carrier | insurer]] agrees to accept on a particular placement. In the [[Definition:Lloyd's of London | Lloyd's]] and London subscription markets, a "line" is the percentage of a risk that an individual [[Definition:Syndicate | syndicate]] or company market writes, physically stamped or recorded on the [[Definition:Slip | slip]] during the [[Definition:Placing | placing]] process. The term also appears in broader industry usage to describe a category of insurance business — as in "[[Definition:Line of business | line of business]]" — though the risk-share meaning is its most market-specific application.

🔄 When a [[Definition:Broker | broker]] takes a risk to market, they seek commitments from multiple underwriters, each of whom decides what percentage line they are prepared to write based on their [[Definition:Risk appetite | risk appetite]], [[Definition:Capacity | capacity]], and view of the pricing adequacy. A lead [[Definition:Underwriter | underwriter]] might take a 25% line, setting the [[Definition:Terms and conditions | terms and conditions]], while following markets add their lines — 15% here, 10% there — until the slip reaches 100% and the placement is fully subscribed. If demand exceeds supply, the broker may need to [[Definition:Signing down | sign down]] each participant's line proportionally. The size of line an underwriter takes signals confidence in the risk and determines their share of both the [[Definition:Premium | premium]] income and any [[Definition:Claims | claims]] liability.

📌 Understanding how lines work is essential for anyone operating in subscription or [[Definition:Coinsurance | coinsurance]] markets. The lead underwriter's willingness to put down a meaningful line gives following markets confidence to participate, effectively anchoring the placement. For [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Coverholder | coverholders]] operating under [[Definition:Binding authority agreement | binding authority agreements]], the concept manifests differently — their authority typically defines a maximum line size per risk, ensuring no single exposure exceeds the [[Definition:Capacity provider | capacity provider's]] comfort level. In [[Definition:Reinsurance | reinsurance]] treaty placements, lines function similarly, with multiple [[Definition:Reinsurer | reinsurers]] each committing a percentage share of the treaty's [[Definition:Capacity | capacity]].

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Line of business]]
* [[Definition:Slip]]
* [[Definition:Subscription market]]
* [[Definition:Lead underwriter]]
* [[Definition:Signing down]]
* [[Definition:Capacity]]
{{Div col end}}

Definition:Line - Revision history

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