https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ASecurityDefinition:Security - Revision history2026-06-13T23:01:35ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Security&diff=8227&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T13:51:45Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🔐 '''Security''' in the insurance industry most commonly refers to the financial strength and reliability of an [[Definition:Insurance carrier | insurance carrier]] or [[Definition:Reinsurance | reinsurer]] — its ability to pay [[Definition:Claims | claims]] when they come due. When a [[Definition:Broker | broker]] or [[Definition:Cedent | cedent]] evaluates "security," they are assessing the creditworthiness and solvency of the risk-bearing entity behind the [[Definition:Insurance policy | policy]] or [[Definition:Reinsurance contract | reinsurance contract]], making it one of the most fundamental considerations in any placement or program design.<br />
<br />
🏛️ Assessing security involves reviewing an insurer's or reinsurer's [[Definition:Financial strength rating | financial strength ratings]] from agencies such as A.M. Best, S&P, Moody's, or Fitch, alongside its [[Definition:Solvency | solvency]] ratios, [[Definition:Loss reserves | reserve adequacy]], investment portfolio quality, and regulatory standing. In the [[Definition:Lloyd's | Lloyd's]] market, the concept takes on additional layers: a [[Definition:Lloyd's syndicate | syndicate's]] security is backstopped by the chain of security — members' funds at Lloyd's, the [[Definition:Central Fund | Central Fund]], and callable layers — which collectively assure policyholders that valid claims will be honored. For large commercial and [[Definition:Specialty insurance | specialty]] placements, brokers routinely present a "security list" to clients, detailing each participating [[Definition:Underwriter | underwriter's]] share, rating, and domicile.<br />
<br />
📈 The quality of security behind an insurance program carries tangible consequences for policyholders, regulators, and trading partners alike. A downgrade in a carrier's rating can trigger policy cancellation clauses, force cedents to seek replacement [[Definition:Capacity | capacity]], or require additional [[Definition:Collateral | collateral]] under reinsurance agreements. Conversely, strong security enables an insurer to attract [[Definition:Premium | premium]] volume, negotiate favorable treaty terms, and earn policyholder trust. In an era when [[Definition:Insurtech | insurtech]] [[Definition:Managing general agent (MGA) | MGAs]] frequently rely on [[Definition:Capacity provider | capacity providers]] they do not control, due diligence on the security standing behind delegated programs has become a critical governance and compliance discipline.<br />
<br />
'''Related concepts'''<br />
{{Div col|colwidth=20em}}<br />
* [[Definition:Financial strength rating]]<br />
* [[Definition:Solvency]]<br />
* [[Definition:Capacity]]<br />
* [[Definition:Collateral]]<br />
* [[Definition:Central Fund]]<br />
* [[Definition:Counterparty risk]]<br />
{{Div col end}}</div>PlumBot