What is Lloyd’s Of London?
Lloyds of London is a market for insurance and reinsurance in London, United Kingdom. Its a world leader in insurance markets and provides specialist insurance assistance to firms in more than 200 territories and countries.
What Does Lloyd’s of London Do?
Lloyds is a corporate body, not an insurance company, that is regulated by Lloyds Act 1871 and following acts of Parliament. Edward Lloyd owned Lloyds Coffee House on Tower Street in London, which is where the market began around 1686. Lloyds of London is a market of members. Lloyds is the oldest insurance marketplace that has been continuously active in the world. It has held onto unusual practices and structures that are not like other providers. The Council of Lloyds has six nominated members, six external and six working members. The Governor of the Bank of England is responsible for appointing the nominated members, which includes the chief executive officer. The external and working members are chosen by Lloyds members. The chairman and deputy chairpersons get elected annually by the working members of the Council. Regulating bodies approve all members. At Lloyds, there are two divisions of firms and people active. The first class of people is the members or capital providers. Next, there are the agents, brokers, and others who support the members, represent outside customers and underwrite the risks. There are managing agents who manage and sponsor syndicates. A major source of business for Lloyds is the coverholders. In 2015, there were 4,008 coverholders who generated a lucrative share of the overall premium income for the market. A network of brokers is how Lloyds business remains balanced and distributed globally. Financial security is vital. Policyholders have peace of mind and the capital providers gain confidence. Lloyd has a special capital structure, known as the Chain of Security that involves central assets, funds of members at Lloyds and syndicate level assets. All of these provide exceptional financial security to policyholders and give members capital efficiency.
