Lloyd's Underwriter Interview Questions UK: 8 Real Questions and What Interviewers Want

Most Lloyd's Underwriter interviews in the UK follow a pattern, and knowing it beats guessing. Below are eight questions from our bank of 12, each with a note on what the interviewer is really after.

Eight Lloyd's Underwriter interview questions, and what the interviewer is thinking

1. What does a typical day look like for a Lloyd's underwriter, and why do you want to underwrite in the subscription market?

Why they ask: They want to see that you understand the pace, relationships and personal accountability of underwriting at Lloyd's.

2. How do you decide whether to lead a risk or follow, and what makes a good lead underwriter?

Why they ask: Lead and follow decisions are central to subscription underwriting, and they test your judgement and market understanding.

3. Explain written line, signed line and signing down, and how you would decide on your line size for a risk.

Why they ask: They want to check you know the mechanics of subscription placing and how you manage exposure.

4. What do you look for when reviewing a slip and policy wording, and which LMA clauses would you expect to see?

Why they ask: Wording errors cause expensive disputes, so they want to see that you read carefully and know the standard clauses.

5. How does the year of account system work at Lloyd's, and what does reinsurance to close mean for how you think about your portfolio?

Why they ask: They are testing understanding of a distinctive feature of the Lloyd's market and its effect on reserving and performance.

6. How do you monitor aggregate and catastrophe exposure on your account, and how are the realistic disaster scenarios used?

Why they ask: Exposure management is a Lloyd's requirement and a key part of a senior underwriter's discipline.

7. A broker asks you to lead a complex risk by close of business, but the information is thin and others are ready to quote. What do you do?

Why they ask: They want to see discipline and independence when there is pressure to compete for the lead.

8. Tell me about a time you led a complex placement and had to negotiate terms with a broker and other markets.

Why they ask: They are looking for evidence of leadership, technical command and negotiation in the subscription market.

A sample answer to question 1

What does a typical day look like for a Lloyd's underwriter, and why do you want to underwrite in the subscription market?

A day usually starts with market news, overnight losses and reviewing the portfolio and exposure reports. Then I would see brokers, often on the Lloyd's floor or in our box, hearing presentations on risks, challenging information, giving indications and quoting. In between, I would review slips and wordings, speak to claims about open losses, check rate monitoring and referrals, and meet my team to discuss line sizes and appetite. I am drawn to the subscription market because decisions are made face to face, quickly and with personal accountability, and our name is on the line for what we write. It requires you to form a view on technical price, structure and the quality of the broker's information while competing and cooperating with other underwriters on the same slip. I also value the access to complex specialty risks and the knowledge of the leaders in each class. The qualities I think matter are judgement, resilience, integrity and the ability to say no politely.

Common mistake to avoid: Describing only the glamour of the Lloyd's room; ignoring portfolio discipline

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the Lloyd's Underwriter interview questions page. The first five are free, no sign-up needed.