Lloyd’s of London : The Market’s Structure

by purplespatch

This figure visualizes the structure of the Lloyd’s of London market. (Retrieved from http://www.bbc.co.uk)

Types of business evolved into categories namely Marine, Non-Marine, Motor and Aviation. Names for their percentage of premiums accepted the concept of unlimited liability.  Thus, all Lloyd’s Names agreed by the articles of their association, that if any of them fail to meet obligations or goes bankrupt, each of the other members will be equally responsible for those debts, to the full extent of their own personal wealth.

Mentioned earlier, Lloyd’s is not an insurance company owned by its shareholders, but a marketplace for insurance. It is ‘owned’ by the members, and is financed by the membership fees. It is overseen by the Council of Lloyd’s and was self-regulating until the Financial Services Authority took over the regulation of Lloyd’s in 2000.