Lloyds Of London

1. Lloyd’s of London
3rd Session

2. A Brief History of Lloyd’s
Lloyd’s began in Edward Lloyd’s Thames-
side coffee house in Tower Street in the City
of London.
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.

3. A Brief History of Lloyd’s
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.

4. A Brief History of Lloyd’s
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.

5. A Brief History of Lloyd’s
Lloyd died in 1713 but the coffee house
continued to prosper as a centre for Marine
Insurance.
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.

6. A Brief History of Lloyd’s
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.

7. A Brief Histroy of Lloyd’s
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.

8. Lloyd’s of London
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.

9. Important Characteristics
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.

10. Important Characteristics
2.The Insurance is actually written by
the various syndicates that belong to
Lloyd’s.

11. Important Characteristics
3.The individual members (names) who
belong to the various syndicates
have unlimited liability with respect to
Insurance written as individuals.

12. Important Characteristics
4.Corporations with limited liability can
now join Lloyd’s of London.

13. Important Characteristics
5.Individual members must also meet
stringent financial requirements.