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Lloyd's of London

Lloyd's of London, the centuries-old insurance marketplace

Lloyd's of London (Lloyd's) is an insurance market located in London. Unlike most of its competitors in the insurance industry, it is not an insurance company. Rather, Lloyd's is a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament and operates as a partially-mutualised marketplace within which multiple financial backers, grouped in syndicates, come together to pool and spread risk.

The business underwritten at Lloyd's is predominantly general insurance and reinsurance. The market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in around 1686. Today, it has a dedicated building on Lime Street in the City of London financial district, which was opened in 1986.

In 2017 there were 85 syndicates managed by 56 managing agencies that collectively wrote £33.6 billion of gross premiums on business placed by 287 approved brokers.

  • The policyholder?
    They could be businesses, organisations, other insurers and individuals from around the world looking to mitigate the impact of potential risks. And it’s not only the everyday risks they’re looking to cover. But also complex and unique ones, like protecting a business from cybercrime or insuring first-of-its-kind technology.
  • The local broker?
    They are the first contact for a policyholder. They work in the local market where the policyholder is based. They’ll assess the policyholder’s needs and decide if it’s more suitable for the Lloyd’s marketplace.
  • The underwriter?
    They work with other specialist underwriters and the broker to draw up the policy. Each underwriter will decide on the price and terms they’re willing to take.
  • The syndicate?
    They are made up of underwriters who group together to form a syndicate to write insurance at Lloyd’s. Underwriters enter into insurance contracts on behalf of Lloyd’s syndicates. Each syndicate is given a number by Lloyd’s to identify them.
  • Lloyd’s Coverholder?
    A Coverholder is a company or partnership authorised to enter into contracts of insurance, and to issue insurance documentation on behalf of one or more Lloyd's syndicates. Coverholders allow Lloyd’s syndicates to operate in a region or country as if they were a local insurer. This is achieved by Lloyd’s syndicates delegating their underwriting authority to Coverholders.
  • Why use a Lloyd’s Coverholder?
    Coverholders can offer the best of both worlds. They have the local knowledge to fully understand your requirements, while offering access to Lloyd's specialist underwriting expertise, capital strength and brand.

Financial Strength and Rating

Financial Security is most important. Lloyd's financial strength and robust capitalization is validated by three of the world's leading insurance rating agencies. A.M. Best, Standard & Poor's and Fitch Ratings.

Lloyd's unique capital structure, often referred to as the 'Chain of Security', provides excellent financial security to policyholders and capital efficiency to members.

A+ Quality Security

Standard & Poor's: A+ (Strong)

Fitch Ratings: AA- (Very Strong)

A.M. Best: A (Excellent)

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