Lloyd's

Lloyd's of London (also known as Lloyd's) is an insurance and reinsurance market located in London, United Kingdom. Unlike most of its competitors in the insurance and reinsurance sectors, Lloyd's is not a company. Instead, it operates as a corporate body governed by the Lloyd's Act of 1871 and subsequent Acts of Parliament.

History

Lloyd's of London was established by Edward Lloyd at his coffee house on Tower Street in around 1686. The establishment was moved to Lombard Street in 1691, where fresh roasted coffee was served to the patrons and the Lloyd's News was first published. The coffee house soon became recognised as an ideal place for obtaining marine insurance and this is where the Lloyd's that we know today began.

Structure

The Lloyd's market has a unique structure which has evolved over the years. It is made up of a number of individuals and firms which are grouped together into syndicates. These syndicates are themselves members of the Society of Lloyd's. The syndicates take on the insurance risk while the Society provides the physical location and services to the market.

Operations

Lloyd's operates in the specialist insurance and reinsurance market, a marketplace where the risks are too large or too complex to be underwritten by the traditional insurance market. Lloyd's is home to over 50 managing agents and over 300 brokers.

Criticisms and Controversies

Over the years, Lloyd's has faced a number of criticisms and controversies, particularly in relation to its handling of asbestos claims. In the 1990s, Lloyd's went through the most traumatic period in its history, with losses from asbestos claims and other disasters leading to a crisis in the market.

See Also

• Insurance
• Reinsurance
• Lloyd's Act
• Asbestos and the law

External Links

• Official website

Lloyd's Resources
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