Lloyd's of London

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Lloyd's of London

An insurance and reinsurance market in London. Active since the 1600s, it is not a company, but instead a society of individual and corporate members, who come together to spread and pool risk between themselves. Thus, Lloyd's insurance policies are backed by the financial stakes of its members. Lloyd's does not underwrite policies itself (it leaves that to members). but instead acts as a de facto regulator for the conditions under which its members offer policies.

Lloyd's has a three-tiered corporate structure: members, managers, and syndicates. Members provide capital and employ one or more underwriting syndicates. Managers provide the business infrastructure to syndicates for insurance and reinsurance policies. Syndicates underwrite risks and handle claims on particular policies. Complex and/or expensive policies often involve multiple syndicates. Lloyd's also employs brokers and service companies to facilitate transactions between clients and Lloyd's.
References in periodicals archive ?
This data set, coupled with our location intelligence applications, provides a powerful analytic tool for critical insurance decisions in underwriting, portfolio risk, realistic disaster scenario analysis, and claims planning and preparedness.
April 15 /PRNewswire/ -- Risk Management Solutions (RMS), the world's leading provider of products and services for catastrophe risk management, has issued a set of instructions and tools to assist Lloyd's syndicates in completing the 2004 Lloyd's Realistic Disaster Scenarios (RDS).
Additionally, Lloyd's syndicates have reporting requirements for Lloyd's([R]) Realistic Disaster Scenarios (RDS).
Commercial insurers are questioning why these sophisticated models failed to forecast a devastating event such as Hurricane Katrina, and asking whether it's time to rethink the tools used to create realistic disaster scenarios.
E[acute accent]As part of its ongoing rating analysis of Lloyd's, Fitch reviews various realistic disaster scenarios (RDSs) to which Lloyd's is exposed.