The Committee’s recommendations focused on the control and reporting functions of boards, particularly of listed companies, and on the role of auditors. Its purpose was to review those aspects of corporate governance specifically related to financial reporting and accountability. Has impacted upon the Combined Code on Corporate Governance.

Reinsurance experience calculated by matching the total value of all losses and movements in reserves during a given 12month period, regardless of the date of loss, with the premiums earned during the same period. Calendar year statistics are suitable for financial considerations but not for assessing results.

A payment to cover losses and management expenses made by a member of a protection and indemnity club in consideration of a right to indemnity. The ‘calls’ are based on the tonnage entered in the club by shipowners. Initial payment may be followed by supplementary calls.
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The sum payable by a member of a Protection and Indemnity Club for his right to indemnity by the club. A call payable at the outset of each period is termed an Advanced call. Additional payments (supplementary calls) in respect of a period may be made subsequently if required to meet claims arising.

The right, not the obligation, to buy the underlying asset or take cash, based on movements in an underlying index as in a weather derivative. Compare with put option.

The FSA’s ICOB Rules require retail customers to be given a cancellation period of 14 days for general insurance contracts and distance non-investment mediation contracts, and 30 days for pure protection contracts, or, if later, the date of receipt of the policy documents.

A clause giving both parties to marine open covers the right to give 30 days’ notice of cancellation. Where war and strike risks are covered, insurers may give seven days’ notice, (in some cases less), of cancellation without disturbing the tenure of the open cover itself. When the clause is invoked, shipments that have gone or will go forward before the notice expires remain covered until arrival. Ca clauses also appear in floating policies.

A method of transferring capacity from one Lloyd’s member to another. Syndicate participants in one year have the right to remain in that syndicate in the following year or transfer their capacity to other members by auction. The auctions have particularly helped integrated Lloyd’s vehicles to increase their capacity. Sellers of capacity are called tenderers, buyers are called subscribers. The auctions are governed by Auction Byelaw (14/97). See CAPACITY TRANSFER MARKET.

Primary insurers boost their ability to accept larger or more risks, by availing themselves of reinsurance facilities.

Market for the transfer of syndicate capacity at Lloyd’s. The transfer is usually from names to aligned corporate members through capacity auctions or bilateral agreements (byelaw 8/98). See MANDATORY OFFERS.

The part of Lloyd’s created by the Franchise Board that administers the capacity transfer market. It is concerned with capacity auctions and, in particular, mandatory offers and minority buyouts. CTP has three independent members – a nominated member of the Council as chairman, a lawyer and a financial expert. They also have a Lloyd’s Members’ Association nominee and one nominee from the third party capital providers; both can be changed on a case-by-case basis.