Lloyds of London and how we replicate these principles for our SME clients
Lloyd’s of London is a cornerstone of the global insurance industry. It is renowned for its historical significance, unique market structure, expertise in complex risks, and global reach. When in London recently, I was invited to tour around the Grade 1 listed building that is home to the world-leading insurance marketplace that is Lloyd’s. Whilst there, the expert guide provided an in depth understanding of the origins of Lloyd’s, and its growth throughout the years.
From starting in a Coffee Shop by the Thames in 1688, to a world leading marketplace through which £52.1bn of premiums were placed in 2023. Opened by Edward Lloyd in 1688. Situated near the River Thames, the coffee house quickly became a bustling hub for maritime commerce and trade. The establishment became renowned for its reliable sources of shipping news and intelligence, which were crucial for making informed underwriting decisions – Thus providing the basis from which most insurance contracts still follow today. Lloyds provides a place for its multiple underwriters (known as Syndicates) to operate.
In the building, Insurance Brokers, will present terms to and negotiate with the ‘Syndicates’ to obtain cover on behalf of their clients. This is the same principle that we, Howden Insurance, provide on behalf of our clients. I personally look after insurance for SME risks which would not be as complex as the risks discussed at Lloyds.