Maintains Lloyd’s worldwide trading status. It manages Lloyd’s overseas offices, deals with overseas compliance, accredits Lloyd’s brokers, promotes Lloyd’s and develops its portfolio of licences. It also runs a Business Intelligence Centre with wide-ranging information services. Its electronic and paper-based resources cover insurance markets, companies, news, legal information, etc.
Insurance Encyclopedia
Lloyd’s, classes of business
Lloyd’s underwrites five main classes of business: marine, non-marine, motor, aviation and term life.
Lloyd’s, Conduct of Business
Registered members of Lloyd’s must adhere to certain standards of conduct of business set out in byelaws and codes. The FSA’s Conduct of Business Sourcebook includes a chapter on Lloyd’s.
Lloyd’s, Corporation of
When incorporated under the Lloyd’s Act 1871 no distinction was made between the Corporation and the Society of Lloyd’s. The Corporation has historic links with Edward Lloyd’s eighteenth-century coffee house, a meeting place for underwriters, shippers, etc. The Corporation does not underwrite business but is the platform from which business is done. The Corporation’s departments include the commercial directorate, market supervision, legal services, worldwide markets, IT, education and training, compliance and authorisations.
Lloyd’s, Council of
Created by the Lloyd’s Act 1982, the Council manages and supervises the Lloyd’s market. It is the internal regulator of Lloyd’s subject to the overriding supervision of the FSA. The Council has six working, six external and six nominated members. The appointment of the nominated members has to be confirmed by the Governor of the Bank of England. Lloyd’s members select the remaining members. The Council makes decisions, issues resolutions, requirements, rules and byelaws, but now delegates a range of issues to the Lloyd’s Franchise Board.
Lloyd’s, regulation of
The external regulator, the FSA, delegates to the Council of Lloyd’s, the internal regulator. The Council must maintain an effective delegation of responsibilities for the purpose of carrying out the Society’s regulatory functions so that the Council can adequately control them. The Society deals cooperatively with the FSA in carrying out those regulatory functions and notifies the FSA when proposing byelaw changes. The byelaws are supplemented by Core Principles for Underwriting Agents and various codes. The FSA will regulate Lloyd’s brokers from 2005. See MARGIN OF SOLVENCY; REQUIRED MARGIN BUSINESS); REQUIRED MARGIN (LONG TERM BUSINESS). (GENERAL
Lloyd’s, Society of
Lloyd’s Act 1871 incorporated Lloyd’s as a ‘Society and Corporation’ without distinguishing between the two. However, FSMA, s. 190, specifically makes the Society an authorised person enabling the FSA to make rules and take disciplinary action against it. The FSA can issue directions to members of the Society or (s.193) direct the Society, through its Council, to impose obligations on its members. The Society is often said to comprise those individuals and entities that are for the time being members of Lloyd’s plus the legal rights and all property that collectively belongs to them.
Lloyd’s
Depending on the context this term may refer to – (a) the society of individual and corporate underwriting members that insure and reinsure risks as members of one or more syndicates. Lloyd’s is not an insurance company; (b) the underwriting room in the Lloyd’s Building in which managing agents underwrite insurance and reinsurance on behalf of their syndicate members. In this sense Lloyd’s should be understood as a market place; or (c) the Corporation of Lloyd’s which regulates and provides support services to the Lloyd’s market.
Lloyd’s ‘O’ Group
An informal meeting at Lloyd’s of the Chairman, deputy chairmen and senior officials, to discuss current problems and events.
Lloyd’s Act 1982
The most recent of seven private Acts of Parliament that define the powers of the Society of Lloyd’s. The Council of Lloyd’s was made the governing body of Lloyd’s under this Act.