To provide coverage in China, syndicates need to be approved to participate on the LICCL platform. Each syndicate operates as a separate underwriting division with nominated underwriters appointed by managing agents.
To arrange a local policy as part of a multinational policy, syndicates’ underwriters should contact their local underwriters on the China platform who will co-ordinate with the local customer and provide a quote in line with locally regulated filed rates and wordings (aligned as closely as possible to original proposal).
Each risk or portion thereof (if subscription business) written by and in the name of LICCL will be booked locally and internally accounted for against the corresponding underwriting division(s).
In principle, underwriting divisions are responsible for policy issuance and data input in the local core business system. Upon request the local Corporate team may provide shared-services to assist with data inputs and policy issuance subject to shared-service charges.
Following local regulatory requirements, up to 80% of all Chinese risks written can be ceded back to the corresponding syndicate. The remaining 20% risks can be reinsured to other qualified reinsurer(s) (either syndicate’s affiliate or third party reinsurers) (subscription business might be exempted from the restrictions – LICCL team can advise on preferred approach).