When you’re looking at insurance market names, none carries more weight than that of Lloyd’s of London.

This company has been around for more than 300 years and is one of the foremost insurance trade centres across the globe. It has worked in Australia for more than 150 years, and today, it helps not only its customers but also the wider Australian community.

From its origins in a coffee shop in London to a presence as a worldwide insurance leader, the story of Lloyd’s of London is fascinating. Read on to learn more about this company and its work in Australia and across the globe.

What Is Lloyd’s of London?

Lloyd’s of London is an insurance market based in London that helps to spread the risks of different groups and insurance coverages. It allows members to join together as syndicates. These groups come together to sell new offerings of equity or debt security to investors.

Lloyd’s of London has syndicates that are specialized in different types of risks. Each syndicate decides which type of risk it wants to insure. Lloyd’s main purpose is to act as an intermediary among clients, underwriters, brokers, and insurance companies.

History

Lloyd’s got its start in a coffee house in 1688 (owned by Edward Lloyd) in the middle of London’s rise to prominence as a trade centre. There was an increasing demand for ship and cargo insurance, and Edward

Lloyd’s coffee shop became the place to obtain marine insurance. This humble start quickly led Lloyd’s to prominence in insurance brokering across the globe.

By the 1730s, Lloyd’s had begun to dominate the marine underwriting industry. In 1750, we saw the first official details of a concrete underwriting. In 1811, the Lloyd’s Agency was created to be eyes and ears for the underwriting market across the globe.

In 1871, the first of the Lloyd’s Acts were passed in Parliament. This recognized the Society of Lloyd’s as a statutory corporation and protected the Lloyd’s reputation.

In 1877, Cuthbert Heath introduced non-marine policies to Lloyd’s for the first time in nearly a century. This set the company on a path that would take them across the globe in business. Within the next few years, Lloyd’s would land in Australia.

How It Works

Lloyd’s of London works like a financial market, with buyers representing different clients who want to hedge different risks. Buyers look to buy protection in the form of insurance policies, and sellers represent different Lloyd’s members. These members provide and sell protection against the risks that their buyers face.

This financial market also involves brokers, parties who help buyers and sellers to meet their optimal match. There are also managing agents who handle the syndicates on behalf of Lloyd’s members.

Company Values

Today, Lloyd’s of London values inclusivity and a working environment where everyone feels safe, valued, and respected. Lloyd’s of London CEO, Jason Neal, says,

“The standards you accept across your community become your own. Lloyd's leadership is committed to transforming our culture in the marketplace.”

Lloyd’s works to make sure there is a proper gender balance in their company to keep the market welcoming for all. They ensure everyone is heard and champion wellbeing in their company. They also promote owning accountability at the board level throughout their organization.

Work in Australia

Australia represents Lloyd’s fourth-largest market, and the company has a long and proud history there. They provide tailored insurance and reinsurance solutions for a wide variety of Australian risks. These include things like property catastrophe, professional liability, accident and health, construction, real estate, transport, energy, cyber threats, and political risks.

Given the recent bushfires in Australia, Lloyd’s presence there has become especially important. Not only is the company providing support to those affected by the devastation, they are also working to help the community. From sponsoring endangered animals to supporting projects that focus on the environment and sustainability, they are working to make sure Australia a better place to live and work.

Claims Support in Australia

Lloyd’s underwriters are licensed to write insurance and reinsurance policies in Australia for everything except life insurance. They have more than sixty tailored lines available to help everyone get the solutions they need. These services include risk coverage against all general insurance products.

In addition to the policies we discussed earlier, Lloyd’s also offers insurance against energy, livestock and bloodstock, nuclear, terrorism, and yacht disasters. They cover 39 per cent of casualties, 14 per cent of property treaty policies, and 12 per cent of accident and health disasters.

Lloyd's of London and Gallagher Bassett

Today, Lloyd's is among the biggest players in the Australian insurance industry. In 2019, Australian businesses contributed more than $2 billion in annual premiums to the Lloyd's market. They work with only the highest-quality claims management services to provide amazing protection for every Australian who needs it.

Since 1997, Gallagher Bassett has assisted Lloyd's Syndicates with managing their Australian portfolios. We have more than eighty-five general insurance claims specialists who provide cost-effective and Lloyd's-compliant handling of claims across multiple classes of coverages and we continue to achieve outstanding results for our Lloyd's partners on both open market, Lineslip and binder business.

Peter Diskin, Chief Client Officer – GB UK, says:

“With the measurable hardening of markets across key sectors and capacity reduction evident, Gallagher Bassett’s experience in managing and controlling the costs of complex risks portfolios is as important as ever for the Lloyd’s market, Managing Agents, Coverholders and placing brokers. Our purpose built, compliant Claims Management model from First Notification of Loss through to resolution continues to be a key ingredient in the consideration of our Lloyd’s clients as they continue to forward plan and navigate through the changing underwriting landscape.”

Discover the Benefits for Yourself

Lloyd’s of London has a rich history born out of groups of sailors talking in a coffee shop. From those humble beginnings, the business has risen to a powerful global market and one that has a huge presence in Australia. No matter what your insurance needs are, Lloyd’s of London can cover them.

Visit our London Market page to find out more about how GB assists Lloyd’s syndicates to manage their Australian portfolios.