Syndicate

What Does Syndicate Mean?

A syndicate is a group of individuals or organizations that come together, either temporarily or permanently, for a business purpose. The founders typically establish a syndicate because the project at hand is too large or complex for a single person or organization to manage on their own.

Insuranceopedia Explains Syndicate

Insurance companies may form a syndicate when a single insurer cannot adequately meet the insurance needs of a large company or its employees.

In a syndicate, each member typically assumes a portion of the financial risk or specific risks associated with the project. The distribution of risk is not always equal, with some members taking on a greater share than others.

Temporary syndicates are often disbanded once the financial project they were formed to address is completed.