Rarely defined, but usually means the international insurance business written in London. It consists of: 1. Home foreign, namely direct overseas business written in the UK. 2. International reinsurance (large volumes of business generally come from the US). 3. Marine and aviation. 4. US excess and surplus lines business. London market premiums earn a gross income about equal to that derived from UK ‘domestic’ commercial business and UK personal lines business.

Excess of loss reinsurances of Lloyd’s syndicates and London companies that accept business in the subscription market. Reinsurances of Lloyd’s motor and employers’ liability insurances are not part of the subscription market and are not therefore LMX. The concept of LMX originally centred around whether the business included assumed reinsurance or US business.

Optimisation of client service with a more open and efficient operating environment by enhancing the clarity of contracts and payment terms. LMP updates are published periodically. The Principles have been drawn up jointly by Lloyd’s, the International Underwriters’ Association (IUA) and the Lloyd’s Insurance Brokers’ Committee (LIBC). ‘One stop’ processing for the entire London market has been facilitated through Insur-sure Ltd together with electronic trading through WISE.

Premises near Lloyd’s providing underwriting rooms for leading insurance and reinsurance companies. The companies take up leases and some make LUC their main London office. At peak times there are between 3,500 and 4,000 brokervisits a day (normally it is 2,000 to 2,500) to the LUC, which also houses the International Underwriting Association. All tenants benefit from computer-based communications linking to the world market. Full network facilities and other electronic systems are available.

Benefit payable at normal retirement age under the preservation requirements of PSA93 with which short service benefit must be compared.

general insurance business characterised by lengthy delay between the period of cover and either the emergence or settlement of claims, or both (contrast short tail business).

An agreement by the insured to renew a policy on the original terms for a given term of years, e.g. three, in return for a premium discount. LTAS are separate contracts and if the insurer offers amended cover, the insured can avoid renewals. LTAs are most common in commercial insurance.
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A mutual agreement whereby in return for agreeing to continue the Insurance for a fixed number of years, the insured is allowed a discount on each annual premium. The Insurer normally retains the right to vary the terms of Insurance during the period but period but is exercised the insured may cancel the agreement without forfeiture of earlier discounts.

the classes of insurance business set out in Part II of Schedule 1 to the Regulated Activities Order and characterised by the long term nature of the contracts; for the most part this business comprises various types of life insurance, annuity and pension business, together with capital redemption business and permanent health insurance.

Liability for an injury, e.g. asbestosis, that takes many years before it is discovered and reported as a claim. As most policies are written on a losses-occurring basis it is necessary to trace the insurer on risk at the time of occurrence. Gradual pollution is also a cause of long-tail liability. See LIABILITY SEQUENCE; OCCURRENCE THEORIES.