Lloyd's

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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 ?
Inga Beale, Lloyd's of London CEO, said, 'That means that in the areas of our portfolio where we can directly influence investment decisions we will avoid investing in companies that are involved mainly in coal.
A spokeswoman for Lloyd's of London declined to discuss the Kanye West legal action.
Employees of Lloyd's of London, however, should not be partaking these days after their employer in February banned them from drinking during business hours.
He argued that thousands of policies should be invalidated because, under his reading of the law, the Lloyd's of London underwriters weren't approved by the Arkansas Insurance Department.
The estate and Lloyd's of London are glad this matter got resolved," Jackson estate attorney Howard Weitzman said in a statement.
Lloyd's of London operates a model in which members join together as syndicates to insure risk.
The model - which took four months to create using white gold and platinum - will be auctioned at the real Lloyd's of London building in Lime Street on Tuesday, July 24.
During a day at Lloyd's of London, dressed in a sober grey suit and sporting a red patterned tie, the royal worker was shown by specialist insurer Hiscox Plc how the firm underwrites risk, ranging from sportsmen and sporting events through to how risk is assessed for various industries.
Rudolph's career, however, peaked in 1962 with the Yale School of Art & Architecture, a building that both looked back to Frank Lloyd Wright's Larkin Building and forward to Richard Rogers & Partners' Lloyd's of London.
Kalis has his 360 flip insured with Lloyd's of London for $20 million
LONDON - Lloyd's of London, one of the world's most trusted names in insurance, said Thursday that it plans to abandon its hoary accounting practices and end unlimited liability for its individual investors, in a radical effort to modernize and keep up with more-nimble competitors.
Risky Business: An Insider's Account of the Disaster at Lloyd's of London