Lloyds Of London


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Lloyds Of London

  1. 1. Lloyd’s of London 3rd Session
  2. 2. A Brief History of Lloyd’s <ul><li>Lloyd’s began in Edward Lloyd’s Thames-side coffee house in Tower Street in the City of London. </li></ul><ul><li>Although the exact date of its establishment is unknown, evidence exists that Lloyd’s coffee house was well known in London business circles by 1688. </li></ul>
  3. 3. A Brief History of Lloyd’s <ul><li>Lloyd himself was not involved in Insurance but provided premises, reliable shipping news and a variety of services to enable his clientele of ships’ captains, merchants and rich men to carry on their business of insuring ships and their cargoes. </li></ul>
  4. 4. A Brief History of Lloyd’s <ul><li>The wealthy individuals in the coffee house would each take a share of a risk, signing their names one beneath the other on the policy together, with the amount they agreed to cover. For this reason they were known as underwriters. </li></ul>
  5. 5. A Brief History of Lloyd’s <ul><li>Lloyd died in 1713 but the coffee house continued to prosper as a centre for Marine Insurance. </li></ul><ul><li>By the end of the 18th century the underwriters had elected a committee and moved to their own premises in the Royal Exchange. Only members of Lloyd’s were allowed to accept Insurance business. </li></ul>
  6. 6. A Brief History of Lloyd’s <ul><li>The society of Lloyd’s was incorporated by the Lloyd’s Act 1871 which provided the business with a sound legal basis and laid the foundations for today’s market. </li></ul>
  7. 7. A Brief Histroy of Lloyd’s <ul><li>By the turn of the last century the traditional club of marine underwriters had become an International Market for Insurance risks of almost every type. Lloyd’s pre-eminence as a world centre for Insurance had been established. </li></ul>
  8. 8. Lloyd’s of London <ul><li>Lloyd’s of London is a major worldwide ocean marine insurer that writes a wide variety of risks and is extremely important as a professional reinsurer. Lloyd’s is also famous for writing insurance on diverse exposure units such as a pianist’s fingers, a Kentucky Derby winner’s legs (that’s the horse!), and a hole-in-one at a professional golf tournament. </li></ul>
  9. 9. Important Characteristics <ul><li>1. Lloyd’s technically is not an Insurance company, but is an association that provides physical facilities and services to the members for selling Insurance. </li></ul>
  10. 10. Important Characteristics <ul><li>2. The Insurance is actually written by the various syndicates that belong to Lloyd’s. </li></ul>
  11. 11. Important Characteristics <ul><li>3. The individual members (names) who belong to the various syndicates have unlimited liability with respect to Insurance written as individuals. </li></ul>
  12. 12. Important Characteristics <ul><li>4. Corporations with limited liability can now join Lloyd’s of London. </li></ul>
  13. 13. Important Characteristics <ul><li>5. Individual members must also meet stringent financial requirements. </li></ul>