Following underwriter

Category: Lloyd's market · Reviewed by Chrissie Anderson, Client Executive · Last reviewed 2026-06-05

Following underwriter

A following underwriter is a London market carrier who subscribes to a placement after the slip leader has agreed terms. The follower contributes a line of capacity at the lead’s terms, relying on the lead’s underwriting judgement and on the placement’s collective momentum.

Category: Lloyd’s market Also known as: follower, following market Related concepts: slip leader, bureau leader, Lloyd’s underwriter

Definition

The subscription market model relies on a clear distinction between the lead underwriter (who agrees terms and accepts the largest single line) and the following underwriters (who subscribe at the lead’s terms in smaller lines until 100 per cent of the cover is placed). Each follower is contractually a separate carrier, severally and not jointly liable for its share of the cover.

Followers may delegate certain decisions to the lead — typically minor endorsements, claims within a threshold and other routine matters — under the LMA General Underwriters Agreement. Material decisions (cancellation, major endorsements, large claims) typically require following market sign-off.

Legal / Regulatory basis

The follower’s role is governed by the subscription agreement provisions of the Market Reform Contract and (in claims and endorsements) by the General Underwriters Agreement.

How it works in practice

A typical London market placement might have one lead underwriter writing a 20–30 per cent line, with the remainder placed across 5–15 following underwriters writing lines of 2–15 per cent each. The follower benefits from the lead’s underwriting work and from market discipline (a follower who consistently underwrites at terms inconsistent with the market may find brokers unwilling to present them placements).

Example

An illustrative example: an Apex commercial property placement at £50m sum insured is led by a major Lloyd’s syndicate at 25 per cent. Following lines are written by four other Lloyd’s syndicates (15 per cent, 15 per cent, 10 per cent, 10 per cent) and three IUA company market reinsurers (10 per cent, 10 per cent, 5 per cent) — a total of eight subscribing carriers including the lead.

See also

References

  1. LMA General Underwriters Agreement — https://www.lmalloyds.com
  2. London Market Group MRC documentation — 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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