Lloyd’s practice of allocating a risk to the year in which it incepted, linked to the practice of syndicates reforming each year allowing members to leave or join. The syndicate underwriting the risk during the year of inception remains liable even though the year of insurance may straddle two years of account. The year of account is closed after 36 months by a reinsurance to close. The annual venture approach will come to an end when Lloyd’s introduce GAAP accounting; premiums will then be apportioned to particular calendar years with premiums for unexpired periods being carried forward.
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This term refers to the reconstitution of a syndicate as an annual business venture where insurance and reinsurance business is written on a year of account basis.