A Society of Underwriters

Throughout the 18th Century, the informal gathering of merchants at Lloyd’s Coffee House gradually assumed a more cohesive identity. However, there was little or no restriction of activities and the professionalism of the group was mixed.

So in 1769, a number of Lloyd’s more reputable customers decided to break away and set up a rival establishment in nearby Popes Head Alley. This was one of the first signs of any community of interest among underwriters and led rapidly to the establishment of a properly constituted society.

‘New Lloyd’s Coffee House’ as it was called, soon proved to be too small. So a committee was elected to find new premises. Some 79 underwriters and brokers each subscribed £100 towards a new premises. Lloyd’s had become the property of subscribers.

In 1774, rooms were leased in the Royal Exchange and ‘New Lloyd’s’ left the coffee business for good. While still referred to as ‘Lloyd’s Coffee House’ for many years, it was much more like a place of business. The modern Lloyd’s had been born. Over the next century the society of underwriters at Lloyd’s gradually evolved.
 
Membership was regulated and the elected Committee was given increased authority. This period culminated in 1871 with the incorporation of Lloyd’s by Act of Parliament.

The Lloyd’s Act gave the Society a formal legal basis allowing it to acquire property and make by-laws with the full authority of Parliament behind them. It confirmed Lloyd’s as a business institution with guidelines that can be seen still working successfully today.

Lloyd's Today

Lloyd’s may be able to trace its roots to a 17th century coffee shop, but that has little bearing on the market’s current practices. Today, Lloyd’s is home to some of the most skilled and experienced specialist underwriters in the world, leading the industry in creating new areas of insurance, such as kidnap and ransom, space and aviation and cyber-liability, in addition to covering more standard classes of insurance.

Lloyd’s also utilises a range of modern IT systems to process the millions of risks dealt with every year. Certain classes of insurance, fine art and cargo for instance, can now be bought on-line from registered insurance professionals based at Lloyd’s. And by visiting the website, insurance brokers and other professionals from all over the world can gain information on available cover.

Lloyd's in Australia

Lloyd's is a major general insurer in Australia, which is an Australian authorised insurer under the provisions of the Australian Insurance Act. Lloyd's syndicates have approximately $1 billion placed in trust in Australia, purely to act as an additional layer of security to pay claims. Lloyd's is recognised by a leading independent international rating agency, Standard & Poor's, who rate Lloyd's "A+" (Strong).