Where a syndicate exceeds its allocated capacity. Depending on the scale of the problem the managing agent of the syndicate may be required to cease underwriting some or all new business and the members may be required to make available additional funds at Lloyd’s to cover the overwriting.
Insurance Encyclopedia
Overwriting of premiums
Occurs where the volume of business written on behalf of a Lloyd’s member exceeds allocated premium limit. In response Lloyd’s demands additional security to back the additional risks underwritten. The increase may be the result of poor administration, a fall in exchange rates or coverholders writing larger volumes of business than expected under binding authorities.