Lloyd's is the world's best known - but probably least understood - insurance brand. This is because Lloyd's is not an insurance company but a society of members, both corporate and individual, who underwrite in syndicates on whose behalf professional underwriters accept risk. Supporting capital is provided by investment institutions, specialist investors, international insurance companies and individuals.
Lloyd's brokers bring business to the market. The risks placed with underwriters originate from clients and other brokers and intermediaries all over the world. Together, the syndicates underwriting at Lloyd's form one of the world's largest commercial insurers and a leading reinsurer.
The market structure encourages innovation, speed and better value, making it attractive to policyholders and participants alike. Immediate access to decision-makers means that answers on whether a risk can be placed are made quickly, enabling the broker to provide fast, good value solutions.
This diagram is a basic representation of the structure of the market and its participants. A detailed description of the participants can be found below.
Members of Lloyd's
Members of Lloyd's, or 'capital providers' as they are often known, accept insurance business through syndicates on a separate basis for their own profit and loss (in other words, members of Lloyd's are not jointly responsible for each other's losses). The membership of Lloyd's is currently made up of companies, individuals and Scottish Limited Partnerships. Individual members, or 'Names' as they are often known, tend to support a number of syndicates, whereas some corporate members only underwrite through a single syndicate.
Syndicates
Lloyd's members conduct their insurance business in syndicates, each of which is run by a managing agent.
The syndicates operating within the market cover many speciality areas including:
- Marine
- Aviation
- Catastrophe
- Professional indemnity
- Motor
Syndicates tailor solutions to respond to the specific risks of the client base.
Syndicates compete for business, thus offering choice, flexibility and continuing innovation. Syndicates cover either all or a portion of the risk and are staffed by underwriters, the insurance professionals on whose expertise and judgement the market depends.
Managing agents
It is the responsibility of the managing agent to employ the underwriting staff and manage the syndicate on the members' behalf. The managing agent must be a company specifically established for the purpose of managing a syndicate, and it may not carry out any other function. A managing agent may be responsible for more than one syndicate.
Lloyd's brokers
Accredited Lloyd's brokers place risks in the Lloyd's market on behalf of clients. These brokers use their specialist knowledge to negotiate competitive terms and conditions for clients.
There are 176** firms of brokers working at Lloyd's, many of whom specialise in particular risk categories. Each Lloyd's broker is required to demonstrate an understanding of the Lloyd's market, as part of Lloyd's assessment of its suitability to be accredited as a Lloyd's Broker.
Lloyd's operates an accreditation process for brokers seeking access to the Lloyd's Market. All brokers must satisfy all relevant regulatory requirements. Lloyd's performs a careful assessment of all applicant brokers, affirming their reputation and financial standing and investigating the character and suitability of officers and employees before making the decision to accredit. Firms receive provisional accreditation for three years before becoming entitled to use the term "Lloyd's broker".
Local brokers
Any insurance broker can access the expertise and resources of Lloyd's by making contact with an accredited Lloyd's broker.
