Lloyd's


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Related to Lloyd's: Lloyd's List, Lloyd's Register

Lloyd's,

London insurance underwriting corporation of many separate syndicates; often called Lloyd's of London. Founded in the late 17th cent. by a group of merchants, shipowners, and insurance brokers at the coffeehouse of Edward Lloyd, the association is now international in scope. It was originally concerned with the underwriting of marine insurance, and Lloyd's Register of Shipping, established by Lloyd's, remains an annual publication containing detailed information, such as age, tonnage, class, and construction, of the vessels of all nations, together with supplementary data about docks, harbors, and port facilities. With the exception of long-term life insurance, Lloyd's now issues insurance against a wide variety of risks, including those associated with film stars' legs and rock stars' voices.

During the late 1980s and early 90s Lloyd's suffered financial losses approaching $10 billion as a result of claims ranging from damage from natural disasters (hurricanes and earthquakes) to awards in environmental (pollution and asbestos) lawsuits. This led to the personal financial ruin of many of its syndicates' individual members (called Names), who had accepted total liability in exchange for a share of the profits. Lloyd's also found itself faced with class-action lawsuits against its managing agents, who were charged with having failed to adequately advise their clients of the potential risks involved. To win new financing necessary to cover future policies, Lloyd's changed its centuries-old policy and began accepting corporate money and offering limited-liability investments. Corporate investors now provide some 80% of the capital, and changes adopted in 2002 led Lloyd's to stop accepting (2003) new individual members and to increase central control over the syndicates.

Bibliography

See studies by D. E. W. Gibb (1957, repr. 1972), R. S. Sayers (1957), A. Brown (1974, repr. 1987), A. Raphael (1995), E. Luessenhop (1995).

References in periodicals archive ?
Avery and others stressed the "transparency" that would result from abandoning Lloyd's arcane systems of accounting and oversight.
The settlement, three years in the making, must be approved by Lloyd's 34,000 investors worldwide by Wednesday.
From that time Lloyd's brokers worldwide would be able to access sophisticated insurance placing and claims products together with service functions such as electronic mail on LIMNET.
Apart from Lloyd's small account of life business, the largest percentage decrease was in aviation business, driven by the marked softening that has taken place for this line of business.
The Lloyd's market embarked on a review of its capital position in 1992 and was subsequently taken to court by many of its private "Names" investors who are exposed to unlimited liability.
In fact, notes David Wheal, managing director of North America for RFIB, a leading Lloyd's broker: "While Lloyd's can and does handle the more specialist risks, there is a strong appetite for mainstream business, albeit with an E&S flavor--that is where wind, quake, flood, hail, etc.
Lloyd's Chairman Peter Levene told a press conference at Lloyd's that the insurance industry's losses from the hurricanes that hit the United States in 2005 were larger than those generated by the terrorist attacks on the World Trade Center in September 2001.
The on-shore licence will give Lloyd's an important strategic foothold in one of the world's fastest developing insurance markets.
CBRE's Matthew McBride represented Lloyd's, while Robert Emden, Stephen Gordon and David Emden of USI represented Protege Partners.
Lloyd's alternative approach proceeds from assumptions about consciousness proposed more than 60 years ago by the philosopher Edmund Husserl.
1 -- color) For her husband Lloyd's 83rd birthday, Louise Apperson tracked down the man who saved his life while fighting during World War II.
We're constantly comparing and contrasting the UISL's ability to run that sort of book outside our operation with our ability to do it inhouse," says Thompson, noting that the administration of the Lloyd's TSB brand has been insourced.