Lloyds Association
Two types of Lloyd’s associations exist – Lloyds of London and American Lloyds.
Lloyds of London
Although not technically an insurance company, Lloyd’s of London is an association that provides the physical and procedural facilities for its members to write insurance. In other words, it is a marketplace, similar to a stock exchange, wherein members who are investors, work to earn a profit from the insurance operations at Lloyds.
Each individual investor of Lloyd’s belong one or more groups called syndicates, which conducts insurance operations and analyzes insurance applications for insurance coverage.
The insurance written by each individual Name is backed by his or her entire personal fortune and assumes liability only for the insurance he or she agrees to write. Lloyd’s of London has earned a reputation for accepting applications for very unusual types of insurance, such as insuring legs of a famous football player against injury. But most of the insurance written through Lloyds is commercial property and liability insurance.
American Lloyds associations are much smaller than the Lloyd’s of London, and most are domiciled in
Who Provides Insurance
