Lloyd’s:
THE WORLD’S SPECIALIST
INSURANCE MARKET
THE HOME OF
INTERNAtIONAL
INSURANCE
From oil rigs to Ming vases,
nothing surprises us.
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THE HOME OF INTERNAtIONAL INSURANCE
• From origins in marine insurance,
Lloyd’s has been covering risks for
more than 300 years
• Lloyd’s is a market where businesses
buy and sell insurance
• What we protect ranges from offices
and factories to jewellery, aircraft and
the new World Trade Center
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WHY LLOYD’S?
You’re in experienced hands: our market
brings together an exceptional level of
knowledge and underwriting experience
You’re protected: the Corporation of Lloyd’s
monitors the market’s performance and
approves the capital base for the payment of
valid claims by the market
You’re connected: the Lloyd’s market can
be accessed from many places in the world
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How the market works
Getting covered
Corporation of Lloyd’s
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The policyholder
Members
The brokers
Managing
agents
The coverholders
Syndicates
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HOW YOUR RISK IS WRITTEN
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WELCOMING
THE WORLD
Lloyd’s covers risks from
around the globe
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LLOYD’S can be accessed from 200+ countries and Territories worldwide
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Source: Lloyd’s Annual Report 2012. All figures as at 31 December 2012
LLOYD’S
FINANCIAL
STRENGTH
Our Chain of Security
and independent ratings
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LLOYD’S FINANCIAL STRENGTH
• One of many things that makes
Lloyd’s different: the Chain of Security
• It provides the financial strength that
backs all insurance policies written
at Lloyd’s
• It means every policyholder can have
full confidence that all valid claims
will be paid
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OUR CHAIN OF SECURITY
• LINK ONE:
SYNDICATE ASSETS
(£41,126m/US$67,035m/€50,585m)
• Before writing business, a syndicate
must put up funds to cover their own
share of claims
• These funds are the first port of call
when paying policyholder claims
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Figures correct as at December 2012
OUR CHAIN OF SECURITY
• LINK TWO:
MEMBERS’ FUNDS AT LLOYD’S
(£15,660m/US$25,526m/€19,262m)
• Every member (corporate or individual)
must provide sufficient capital to
support their underwriting
• These funds are held in trust for the
benefit of policyholders and used only
if the syndicate assets have been
exhausted
12
Figures correct as at December 2012
OUR CHAIN OF SECURITY
• LINK THREE:
LLOYD’S CENTRAL ASSETS
(£2,485m/US$4,051m/€3,057m)
• The Central Assets are available, at the
discretion of the Council of Lloyd’s, to
meet any valid claim that cannot be met
from the resources of any member
further up the chain
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13
Figures correct as at December 2012
INDEPENDENTLY ASSESSED
In the eyes of leading ratings agencies,
Lloyd’s is viewed as enjoying robust
capital reserves:
• Standard and Poor’s: ‘A+’ (strong)
• Fitch Ratings: ‘A+’ (strong)
• A.M.Best: ‘A’ (excellent)
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Lloyd’s Annual Report 2011
FIT FOR
THE FUTURE
Cybercrime and beyond
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Fit for the future
We write cover for 21st century risks
Cybercrime: we’re a leading provider
of data-breach and data-security
insurance
Carbon Credits: we write cover to
protect against a drop in the value of
carbon credits caused by changes
in legislation
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Fit for the future
We create processes for 21st
century risks
The Exchange: secure and
instant electronic communication
between brokers and underwriters
Claims processes: delivered
an average of 39% reduction
in transaction times for 16,000
claims in 2011
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Lloyd’s:
Your risk
Management,
managed
In summary
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Why lloyd’s?
Lloyd’s means:
• Expertise: a proud 300-year track
record, but with a total focus on the
risks of the future
• Strength: our Chain of Security is
designed to ensure that all valid
claims will be paid
• Accessibility: we’re open for
business in 200+ countries
and territories
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WE LOOK FORWARD
TO WORKING WITH YOU
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WHO’S WHO?
Policyholders require insurance cover
All over the world, businesses, organisations, individuals and
indeed other insurers need insurance to protect themselves
against risk.They brief either a broker or coverholder on what
they need.
Brokers place risks
Most risks at Lloyd’s are placed by brokers. Their activities are
governed by their country’s own regulator but they must also meet
Lloyd’s own eligibility criteria.
Coverholders place risks
Alternatively, clients can go to local coverholders. They work on
behalf of a syndicate, and are authorised by a managing agent to
write a certain amount of international business for the syndicate.
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WHO’S WHO?
Members provide the capital
Members provide the capital to support underwriting in the Lloyd’s market.
They include some of the world’s largest insurance companies, listed
companies, individuals and limited partnerships.
Syndicates write the insurance risks
Syndicates accept the risks on behalf of the members. Their underwriters
negotiate with brokers to arrive at the costs, terms and conditions of an
insurance agreement.
Managing agents manage the syndicates
These companies are set up by members to manage one or more syndicates.
Managing agents employ the underwriting staff and handle the day-to-day
running of a syndicate.
Corporation of Lloyd’s
supports the market
The Corporation owns the Lloyd’s brand and provides the infrastructure and
licences for the market to operate internationally. It reviews and approves
business plans, and manages the Central Fund – the capital that provides that
all claims can be paid.
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