https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ALine_slipDefinition:Line slip - Revision history2026-04-30T17:25:53ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Line_slip&diff=7833&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T13:24:05Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📑 '''Line slip''' is a market facility used primarily in the [[Definition:Lloyd's of London | Lloyd's]] and London insurance markets that pre-authorizes participating [[Definition:Underwriter | underwriters]] to automatically accept a defined share of risks that fall within agreed parameters, without needing to review each individual placement. Essentially, it functions as a standing agreement among a panel of [[Definition:Syndicate | syndicates]] or company markets: when the lead underwriter on the line slip accepts a risk that meets the facility's criteria, the following markets' lines are committed automatically. This mechanism accelerates the [[Definition:Placing | placing]] process and gives [[Definition:Broker | brokers]] certainty that qualifying risks can be bound quickly.<br />
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🔄 A line slip is established through a negotiation in which the lead underwriter and the broker agree on the scope of risks eligible for the facility — typically defined by [[Definition:Line of business | class of business]], geographic territory, [[Definition:Limit | limit]] size, and [[Definition:Premium | premium]] range. Following underwriters each commit a percentage line, acknowledging that they trust the lead's [[Definition:Underwriting | underwriting]] judgment for risks falling within the defined appetite. When the lead writes a qualifying risk, they log it onto the line slip, and followers are automatically bound for their agreed percentages. The lead retains discretion over individual risk selection and pricing, while followers benefit from access to a diversified flow of business without the overhead of reviewing every submission. Governance provisions address situations where a risk falls at the boundary of the facility's scope, and most line slips include audit and [[Definition:Bordereaux | bordereaux]] reporting requirements so followers can monitor portfolio performance.<br />
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⚡ For the London market, line slips address a perennial challenge: the transaction cost of circulating every risk to multiple underwriters in a [[Definition:Subscription market | subscription market]]. By bundling follow capacity into a pre-agreed facility, they reduce placement friction and allow brokers to confirm coverage to clients faster — a competitive advantage when competing against single-carrier markets. However, following underwriters accept a degree of [[Definition:Delegated underwriting authority (DUA) | delegated authority]] risk: they depend on the lead's discipline and must trust that the business written stays within the agreed parameters. Regulatory scrutiny from [[Definition:Lloyd's of London | Lloyd's]] and the [[Definition:Prudential Regulation Authority (PRA) | PRA]] has periodically focused on ensuring that followers conduct adequate oversight rather than passively accumulating exposure, making robust reporting and performance monitoring essential components of any well-run line slip.<br />
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'''Related concepts'''<br />
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* [[Definition:Subscription market]]<br />
* [[Definition:Lead underwriter]]<br />
* [[Definition:Slip]]<br />
* [[Definition:Delegated underwriting authority (DUA)]]<br />
* [[Definition:Binding authority agreement]]<br />
* [[Definition:Consortium]]<br />
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