If a long-standing member of Lloyd's wrote £8m in premiums in 2022, what would its contribution to the Central Fund be?

To determine the correct contribution that a long-standing member of Lloyd's would make to the Central Fund based on the premiums written, it's essential to understand the structure of the Central Fund and the contribution guidelines.

For Lloyd's, members are required to contribute a certain percentage of the premiums they wrote, which helps to maintain the Central Fund that supports the overall market and assists in meeting obligations to policyholders, especially in times of insolvency or market distress.

Typically, the contribution is calculated as a fixed percentage of the written premiums. In recent guidelines, this percentage is set around 0.36% of the premium income. For premiums amounting to £8 million, the calculation for the Central Fund contribution is as follows:

£8,000,000 x 0.0036 = £28,800

This computation provides the accurate contribution amount that the long-standing member would need to make to the Central Fund based on the premiums reported for the year 2022. Thus, the contribution of £28,800 aligns with the established guidelines, making it the correct answer.