Lloyds of London Flashcards
Lloyds had its start as
MArine Insurer for ships and cargo
San Francisco earthquake and fire claims introduce the
need for risk based pricing
1923 in lloyds
creation of central fund at lloyds
80s and 90s in lloyds
scandal, large losses, and fraud lead to investors distrusting lloyds
1993 in lloyds
formation of equitas
Lloyds structural changes and trends after 1992
average syndicate capacity increase, while # of syndicates and managing agents decreased
parties that interact at lloyds include
customers/insureds
brokers/coverholders
lloyds syndicates, managing agents
members (capital providers)
who is the #1 capital provider to lloyds
US and Bermuda
cat events that had large impact on lloyds
hurricane katrina
winter storm uri
eurpean floods
major lines of business at lloyds
property reinsurance
casualty reinsurance
special reinsurance
how does lloyds operate as a market?
risks are brought into an open market by a broker, agents of syndicates choose to take on risk on behalf of syndicate, capital providers provide security/support to Underwriting
how did lloyds almost fail
asbestos and pollution losses in US caused many syndicates to become insolvent
members of lloyds attempted to hide this info and continued to invite new members without disclosing the info and put their funds into sinking syndicates
resulted in mass litigation
how did lloyds save itself after financial crash in 80s and 90s
start equitas - input bad risk into this fund by ceding the loss
utilized corporate capital to fund not individual
readjusted their risk appetite
general undertaking agreement
secretly made new members to lloyds during financial crisis solely liable to pay claims of losses and completely removed any liability from lloyds
