What is a master policy within the Lloyd's structure?

A master policy within the Lloyd's structure refers to a policy that is designed to cover a defined group of individuals or entities under a single policyholder. This arrangement is particularly advantageous for companies or organizations that wish to provide insurance coverage for their employees or members without requiring each individual to have a separate policy.

Master policies are typically utilized in various insurance scenarios, including employee benefits and associations, where a single policy can provide coverage for numerous members. This simplifies administration and can often be more cost-effective, as it allows for streamlined underwriting processes and potentially reduced premium costs due to the bulk nature of the coverage.

By focusing on the needs of a specific group and consolidating the coverage, master policies facilitate more efficient risk management and encourage broader participation in insurance programs among members of the defined group. This is why the answer indicates that a master policy is established for a defined group under one policyholder, capturing the essence of its purpose and structure within the Lloyd's framework.