Lloyd's syndicate A underwrites 60% of a risk, syndicate B underwrites 25% and syndicate C underwrites the remaining 15%. What role are the syndicates collectively acting as?

The syndicates are collectively acting as coinsurers in this scenario. Coinsurance occurs when multiple insurers share the risk of a particular policy together, each taking on a portion of the total risk and corresponding premium. In this case, syndicate A underwrites 60% of the risk, syndicate B underwrites 25%, and syndicate C covers the remaining 15%. This collaboration means that the financial responsibility for loss is distributed among the syndicates according to their respective shares, which perfectly illustrates the concept of coinsurance.

This methodology helps mitigate the potential for any single insurer to be overwhelmed by a large claim, thus promoting greater stability and sustainability within the insurance market. It also encourages risk-sharing, which can be particularly beneficial in large and complex risks that might be too substantial for one insurer alone to handle effectively.