Where & Why ? Lloyds of London is the specialty insurance
marketplace. Lloyds fills the need for Difficult or Unusual
placements. Some of their interesting placements have been: silent
film comedian Ben Turpin's eyes against uncrossingBen Turpin
Marlene Dietrich's, Betty Grable's, [22] Brooke Shields's, and Tina
Turner's legs Marlene DietrichBetty Grable [22]Brooke Shields Tina
Turner Jimmy Durante's nose Jimmy Durante the hands of the 1932
World Yo-Yo Champion Harvey Lowe [23]Harvey Lowe [23] Keith
Richards' fingers Keith Richards
Slide 3
Need for a Catastrophic Marketplace In our case: Hurricane
Georges 1998 started it all Unexpected and unpredictable it can
happen to you Loss of legacy market (perfect storm) : Blanket
limits Low Deductibles Viable Marketplace with financial stability
Comfortable terms We are still at Lloyds today.
Slide 4
What is Lloyds of London First insurance market originally a
Marine market (around 1688). Located in the City of London Group of
individually owned syndicates operating in one environment Governed
by strict standards under British law & Lloyds internal
controls Ownership by individual names (originally) or, now, names
(14%) plus insurance and/or investment companies.
Slide 5
How are they different?
Slide 6
The BOX Originally Underwriters worked only from a box on the
floor: The working floor of Lloyds is set up with open workstations
where underwriters receive agents Agents historically lined up at
the box, presented their coverage needs and were either rejected or
accepted. If accepted, the underwriter signed and stamped a slip,
defining the extent of coverage and participation.
Slide 7
Keeping up with the Times Today Lloyds syndicates maintain
their traditional boxes but most business is written out of their
offices. They still utilize slips, sign and stamp them.
Slide 8
Sample Slip
Slide 9
Traditional Lloyds Major losses still trigger the ringing of
the bell
Slide 10
Business attire is still strictly enforced in London. Women
were not allowed on the Lloyds floor until recent times still you
see few women in Lloyds, however, the first female chief was
recently installed. Access is permitted by non-licensed guests when
accompanied by a licensed agent.
Slide 11
IF YOU NEED TO USE LLOYDS Elect a strong lead syndicate others
will follow Know your risk inside out They trust a good RM and will
underwrite for you Do the engineering Understand specfic risks for
your company (ex. dust) and talk to your mitigation tell the story!
Understand market influences Underwriters are fickle, nervous and
reactive
Slide 12
Know your policy needs In a soft market they come to you In a
hard market you go to them Be sure all markets are following ONE
form Name a claims adjuster
Slide 13
OTHER MARKETS Europe Bermuda America
Slide 14
The Final Program Market pricing is used. Audits conducted by
KPMG
