The role of Lloyd's in insurance

1. The role of Lloyd’s in insurance
Christine Finas | English Second Semester

2. Objective
Explore the 325 years of Lloyd’s history and understand its role inside
the world of insurance
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3. Summary
 The concepts of insurance, reinsurance and the functioning of Lloyd’s market.
 The 325 years of Lloyd’s history.
 The role of Lloyd’s in the management of some major catastrophes.
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4. Part 1: Insurance, Reinsurance and Lloyd’s
organization today
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5. 1. Insurance
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What is “insurance”?
How has the insurance
industry and the law of
insurance evolved?
Insurer
Subscriber

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1. Insurance
The AssuranceAct of 1601
The Great Fire of London
in 1666. Nicholas Brabon
opens the first fire insurance
office in England.

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2. Reinsurance
Reinsurance is a kind of risk
transfer.
 Reinsurance was explicitly
authorized in a law passed in
Antwerp in 1609.
Stabilization
Catastrophe

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3. Lloyd’s organization
The Risk
Manager
The Local
Insurance
Broker
The Lloyd’s
approved
Broker
(London)
The under-
writers
(London)
The
managing
agent
The
Syndicates
The
Members

9. Part 2:The Extraordinary history of Lloyd’s
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1. Lombard Street
(1688-1774)
1734: It is the date of the first
publication of Lloyd’s list
1764:The French-built Mills
Frigate changed the course of the
insurance law history.
1769: ‘the
gambling den’

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2.The Royal Exchange
(1774-1928)
In 1838 new premises at the
Royal Exchange are destroyed by
fire

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3. Leadenhall Street
and Lime street
(1928-current days)
A shelter for people whose houses
had been bombed.
1958: Lloyd’s moved to Lime Street
1965: Lloyd’s admitted for the first
time foreign members.
1973: LilianaArchibald became the
first female Lloyd’s broker.
“ I did not break down the barriers;
they were broken down for me by
the members of Lloyd’s in a very
charming way. ” Liliana Archibald

13. Part 3: Important natural and human catastrophes insured
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1. San Francisco
earthquake
“pay all of our policyholders
in full, irrespective of the
terms of their policies.”
Cuthbert Heath
At 5:12 am onWednesday, April
18, 1906 an earthquake struck
San Francisco.
Human death toll: 3000
Governments could not supply
funds, so the costs are passed on
to the insurers.
Lloyd’s pays $50 Million in claims.

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2.Titanic
On 14 April 1912 theTitanic,
collided an iceberg.
Human death toll: more than
1 500 people died.
The ship was insured for over £1m
by Lloyd’s.

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3. The 9/11 terrorist
attacks
The 9/11 terrorist attacks completely
changed the world’s perception of risk.
Indeed before 9/11.
The 9/11 terrorist attacks were
Lloyd’s largest-ever single loss.

17. Conclusion
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18. Thank you for your attention
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19. [1] Bernstein Peter L, Against the Gods: the Remarkable Story
of Risk. JohnWiley & Sons, September 1996.
[2] Cockerell H. A.L, Lloyd’s of London: A Portrait.
[3] Holland David M. A Brief History of Reinsurance.
Reinsurance News, February 2009.
[4]The 1936 American drama film, Lloyd’s of London,
directed by Henry King.
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