PlumBot: Bot: Creating new article from JSON

2026-03-16T07:09:07Z

Bot: Creating new article from JSON

New page

📋 '''Security list''' is a register of approved [[Definition:Insurance carrier | insurers]] and [[Definition:Reinsurer | reinsurers]] that a [[Definition:Broker | broker]], [[Definition:Coverholder | coverholder]], or regulatory body has vetted and authorized for the placement of [[Definition:Insurance policy | insurance]] or [[Definition:Reinsurance | reinsurance]] business. In the [[Definition:Lloyd's of London | Lloyd's]] market and the London company market, security lists play a particularly prominent role: brokers maintain curated lists of [[Definition:Lloyd's syndicate | syndicates]] and company markets whose [[Definition:Financial strength rating | financial strength]], claims-paying track record, and regulatory standing meet defined thresholds. Beyond London, similar concepts exist wherever intermediaries or cedants must demonstrate that risk has been placed with financially sound counterparties — for example, when U.S. [[Definition:Surplus lines | surplus lines]] brokers confirm that an alien insurer appears on a state's approved or eligible list, or when Asian [[Definition:Ceding company | cedants]] verify reinsurer creditworthiness under local regulatory requirements.

🔍 A security list is typically compiled by a broking house's security or credit committee, which evaluates each market's [[Definition:Solvency | solvency]] position, [[Definition:Capital adequacy | capital adequacy]], credit ratings from agencies such as AM Best, S&P, or Fitch, and any relevant regulatory sanctions or restrictions. When a [[Definition:Placing broker | placing broker]] constructs a [[Definition:Slip | slip]] for a given risk, the lead and following markets must ordinarily be drawn from the firm's approved security list. In jurisdictions governed by [[Definition:Solvency II | Solvency II]], the creditworthiness of reinsurance counterparties directly affects the [[Definition:Solvency capital requirement (SCR) | solvency capital requirement]] calculation, which gives security vetting a quantitative regulatory dimension beyond mere best practice. In the United States, the distinction between [[Definition:Admitted insurance | admitted]] and [[Definition:Non-admitted insurance | non-admitted]] carriers adds another layer: regulators maintain their own lists of eligible surplus lines insurers, and brokers must cross-reference these against internal approvals. Some large global brokers operate centralized security committees that issue group-wide lists, while regional operations may maintain supplementary lists reflecting local market conditions.

⚡ Maintaining a rigorous security list protects [[Definition:Policyholder | policyholders]] and intermediaries alike from the consequences of placing risk with financially unstable counterparties — a lesson reinforced by historical insolvencies in the London market and the collapse of certain [[Definition:Run-off | run-off]] carriers that left unpaid [[Definition:Insurance claim | claims]] in their wake. For brokers, the list is also a risk management and compliance tool: regulators in multiple jurisdictions hold intermediaries accountable for the security of the markets they recommend, and failure to conduct adequate due diligence can result in [[Definition:Errors and omissions insurance (E&O) | errors and omissions]] liability. As [[Definition:Insurtech | insurtech]] platforms and digital placement tools expand, security list data is increasingly integrated into automated [[Definition:Placement | placement]] workflows, enabling real-time checks against approved counterparties and reducing the manual oversight burden.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Financial strength rating]]
* [[Definition:Lloyd's syndicate]]
* [[Definition:Solvency II]]
* [[Definition:Surplus lines]]
* [[Definition:Placing broker]]
* [[Definition:Counterparty risk]]
{{Div col end}}

Definition:Security list - Revision history

PlumBot: Bot: Creating new article from JSON