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 ?
It hopes to provide an estimate in May, but said it believed total claims would fall within its realistic disaster scenario - which looks at a pounds 39bn earthquake centred on Tokyo.
And when you run the realistic disaster scenario for the Olympics," he said, "you can have some fairly major numbers there.
We are getting experts together and looking at potential scenarios across the globe, given all that interconnectivity--what insurance coverages can be given, what roles insurance will play, and come up with realistic disaster scenarios and estimate dollar amounts to them.
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.

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