Hi, Can someone explain what is the meaning of the following sentence from the core reading please? it is for "construction and engineering", it suggested "When written by Lloyd’s syndicates, the policies are often ‘re-signed’ each year to reduce the tail when projecting claims by underwriting year." what is meaning of "re-signed" , is that meaning syndicate can change % of risk participate for construction and engineering risk ? and by reducing % of sign, can therefore reduce the tail ? thank you
By reducing your percentage of the risk, that wouldn't necessarily shorten the tail of the business. The point here is that the risks are multi-year contracts and by rewriting them each year, you reduce the tail as the remaining term of the liabilities is less.
