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Chapter LLM1010

Document Cited authorities 6 Cited in Related
Vincent
Published date10 April 2016
Record NumberLLM1010
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
What is Lloyd’s?

Lloyd’s is not an insurance company. It is a market in which independent insurance underwriters join together in syndicates to sell insurance, mainly through brokers, under the umbrella of the Lloyd’s brand name.

Lloyd’s began in the seventeenth century when ship owners and merchants, who met in a London coffee house owned by Edward Lloyd, got together to share the risk of losing their ships and cargoes, insuring that no single person could suffer a catastrophic loss. They signed the foot of slips signifying acceptance of part of the risk. As time went by they attracted capital from outsiders to help support this “underwriting” activity in a “subscription” market, the latter signifying that a series of underwriters will assume shares of the risk. Lloyd’s is now the world’s leading specialist insurance market, and writes a wide range of insurance business on a worldwide basis. Itis particularly strong on marine and aviation insurance, and in reinsurance, but writes very little life insurance. It was known as Lloyd’s of London until 1997 when the name was changed to Lloyd’s.

The Society of Lloyd’s is a statutory corporation incorporated by Lloyd’s Act1871. The objects of the Society include “the carrying on by Names of the Society of the business of insurance of every description including guarantee business”. The Society is an ‘authorised person’ under the Financial Service and Markets Act 2000, and has permission to arrange the conduct of insurance business in the market. It does not itself underwrite insurance business.

The Council of Lloyd’s (established by Lloyd’s Act 1982) is Lloyd’s governing body, and has power to make such byelaws as it thinks fit to further the objectsof the Society. The Council...

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