Many think that Lloyd's is an insurance company, it is not. Lloyd's of London is a physical regulated marketplace where insurance carriers (Syndicates and Underwriters) meet with insurance brokers to negotiate the placement of risk. Lloyd's of London is the New York Stock Exchange of Insurance.
I was a Lloyd's insurance broker for superyachts and the below should help to explain what this mythical market place is and how it works.
Every day, people businesses and communities in over 200 countries rely on the Lloyd's market for insurance. Every day, more than 50 leading insurance companies and 200 registered insurance brokers meet to negotiate insurance coverage for clients. This collaboration, combined with choice, flexibility and financial certainty of the market means that Lloyd's underwriters can anticipate and respond to risks and create specialist policies to protect the risks that clients face.
Most of the business written at Lloyd's is conducted face to face and every day, on average over $100,000,000 of premium is accepted and over $50,000,000 of claims are paid. Thats over $35,000 of claims paid per minute.
Lloyd’s financial strength derives from its unique capital structure, often referred to as the ‘Chain of Security’. It provides excellent financial security to policyholders and capital efficiency for members.