Following reinsurer

Category: Reinsurance brokers and structures · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-05

Following reinsurer

A following reinsurer is a reinsurer that subscribes to a placement at the lead reinsurer’s terms, taking a smaller line to complete the placement. Following reinsurers rely on the lead’s pricing and underwriting work and contribute capacity efficiently to subscription-market placements.

Category: Reinsurance brokers and structures Also known as: follower, following market Related concepts: lead reinsurer, reinsurance broker, following underwriter

Definition

A typical reinsurance placement has a lead reinsurer at 20–40 per cent and 5–10 following reinsurers writing lines of 2–15 per cent each. The followers’ aggregate line completes the 100 per cent of the cover. Each follower is contractually a separate carrier, severally liable for its line.

Followers may delegate certain decisions to the lead (typically minor endorsements and claims within thresholds) under the General Underwriters Agreement. Material decisions require following market sign-off.

Legal / Regulatory basis

The follower’s role is governed by the slip and treaty wording, and (where applicable) by the LMA General Underwriters Agreement.

How it works in practice

Following reinsurers benefit from the lead’s underwriting work and from the broker’s pre-screening of placements. They contribute capacity to placements they would not have time to underwrite individually and gain access to diversified portfolios with lower transaction cost.

The broker manages the following market with attention to: panel composition (security mix, geographic diversification, relationship strength); allocation of lines (avoiding concentration with any single follower); and ongoing relationship management (renewals, claims advocacy, market intelligence).

Example

An illustrative example: a UK casualty XL programme is led by SCOR at 30 per cent. The followers are Munich Re (15 per cent), Hannover Re (15 per cent), Lloyd’s Syndicate X (15 per cent), Tokio Marine Reinsurance (10 per cent), Mapfre Re (8 per cent) and PartnerRe (7 per cent) — completing 100 per cent. Each follower subscribes at the lead’s terms and shares in the same claims experience.

See also

References

  1. LMA General Underwriters Agreement — https://www.lmalloyds.com
  2. Market Reform Contract — https://www.lmalloyds.com

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.

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