Editing Lloyd's of London (section)

==Structure==
Lloyd's is a market of members, not an insurance company. As the oldest continuously active insurance marketplace in the world, Lloyd's has retained some unusual structures and practices that differ from other insurance providers today. Originally created as a non-incorporated association of subscribing members, it was incorporated by the Lloyd's Act 1871 and is currently governed under the Lloyd's Acts of 1871 through to 1982.

Lloyd's does not underwrite insurance business itself - its members do. The Society effectively acts as a market regulator, setting rules under which members operate and offering centralised administrative services to them. 

===Council of Lloyd's===
[[File:Lloyd's building Adam Room.jpg|thumb|The Council meets in the Committee Room, on the 11th floor of the Lloyd's building.]]
The Lloyd's Act 1982 defines the management structure and rules under which the market operates. Under the Act, the Council of Lloyd's is responsible for the management and supervision of the market. It is regulated by the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] and the [[Financial Conduct Authority]].<ref>{{cite web |url=http://www.lloyds.com/Lloyds/About-Lloyds/Lloyds-governance-structure/Regulation-of-Lloyds |title=Regulation of Lloyd's – About Lloyd's – Lloyd's |publisher=Lloyds.com |date=31 December 2005 |access-date=20 March 2011 }}{{dead link|date=December 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The Council normally has six working, six external and six nominated members.<ref>{{cite web |url=http://www.lloyds.com/Lloyds/About-Lloyds/Lloyds-governance-structure/Council-of-Lloyds |title=Council of Lloyd's – About Lloyd's – Lloyd's |publisher=Lloyds.com |date=31 December 2005 |access-date=20 March 2011 }}{{dead link|date=December 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The appointment of nominated members, including that of the chief executive officer, is confirmed by the [[Governor of the Bank of England]]. The working and external members are elected by Lloyd's members. The chairman and deputy chairmen are elected annually by the Council from among the working members of the Council. All members are approved by the regulating bodies.

The Council can discharge some of its functions directly by making decisions and issuing resolutions, requirements, rules and bylaws. The Council delegates most of its daily oversight roles, particularly relating to ensuring the market operates successfully, to the Franchise Board.

The Franchise Board lays down guidelines for all syndicates and operates a business planning and monitoring process to safeguard high standards of underwriting and risk management, thereby improving sustainable profitability and enhancing the financial strength of the market. The Board is chaired by the chairman of Lloyd's and has three executive members, three non-executives connected to the market and five independent non-executives.<ref>{{cite web |url=http://www.lloyds.com/Lloyds/About-Lloyds/Lloyds-governance-structure/Lloyds_Franchise_Board |title=Franchise Board – About Lloyd's – Lloyd's |publisher=Lloyds.com |date=31 December 2005 |access-date=20 March 2011 }}{{dead link|date=December 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

====Chair of Lloyd's====
The following is a list of the chair of Lloyd's since 1979:
{|
|-
| • 1979–83: Sir Peter Green || • 1984–87: Sir Peter Miller || • 1988–90: Murray Lawrence
|-
| • 1991–92: David Coleridge || • 1993–97: Sir David Rowland || • 1998–00: Max Taylor
|-
| • 2001–02: Sax Riley || • 2003–11: [[Peter Levene, Baron Levene of Portsoken|Lord Levene]] || • 2011–17: [[John Nelson (businessman)|John Nelson]]
|-
| • 2017–25: [[Bruce Carnegie-Brown]]
|• 2025-present: [[Charles Roxburgh|Sir Charles Roxburgh]]
|}

====Chief executives of Lloyd's====
The following is a list of the chief executive officers of Lloyd's since the role was created in 1983:
{|
|-
| • 1983–85: [[Ian Hay Davison]] || • 1985–92: Alan Lord || • 1992–95: Peter Middleton
|-
| • 1995–99: [[Ron Sandler]] || • 1999–06: Nick Prettejohn || • 2006–13: [[Richard Ward (businessman)|Richard Ward]]
|-
| • 2013–18: [[Inga Beale]] || • 2018–present: John Neal
|}

===Businesses at Lloyd's===
[[File:Inside Lloyd's of London.jpg|thumb|right|Interior escalators linking the underwriting floors of the Lloyd's building]]
There are two classes of people and firms active at Lloyd's. The first are members, or providers of capital. The second are agents, brokers, and other professionals who support the members, underwrite the risks and represent outside customers (for example, individuals and companies seeking insurance, or insurance companies seeking reinsurance).

====Members====
For most of Lloyd's history, rich individuals known as Names backed policies written at Lloyd's with all of their personal wealth and took on unlimited liability. Since 1994, Lloyd's has allowed corporate members into the market, with [[limited liability]]. The asbestosis losses in the early 1990s devastated the finances of many Names: upwards of 1,500 out of 34,000 Names (4.4 per cent) were declared bankrupt. This scared away other potential Names. In 2011 individual Names provide only 11 per cent of capacity at Lloyd's, with UK-listed and other corporate members providing 30 per cent and the remainder via the international insurance industry.<ref name=lloydspub>{{cite web |url=http://www.lloyds.com/~/media/Files/Lloyds/Investor%20Relations/2011/Annual%20results/Documents/AR2011_Lloyds_2011_Annual_Report.pdf |title=Lloyd's Annual Results 2011 |publisher=Lloyd's of London |date=31 December 2011 |access-date=28 September 2012 |archive-date=14 January 2013 |archive-url=https://web.archive.org/web/20130114174406/http://www.lloyds.com/~/media/Files/Lloyds/Investor%20Relations/2011/Annual%20results/Documents/AR2011_Lloyds_2011_Annual_Report.pdf |url-status=dead }}</ref> 

No new Names with unlimited liability are admitted, and the importance of individual Names will continue to decline as they slowly withdraw, convert (generally into [[limited liability partnership]]s), or die. In 2014, Names with unlimited liability provided just 2 per cent of the overall capacity in Lloyd's.{{cn|date=September 2023}}

====Managing agents====
Managing agents sponsor and manage syndicates. They canvas members for commitments of capacity, create the syndicate, hire underwriters, and oversee all of the syndicate's activities. Managing agents may run more than one syndicate, as borne out in the fact that in 2023 the 78 syndicates writing business at Lloyd's were operated by just 51 managing agents.<ref name=AnnualReport2021/>

====Members' agents====
Members' agents co-ordinate the members' underwriting and act as a buffer between Lloyd's, the managing agents and the members. They were introduced in the mid-1970s and grew in number until many went bust; many of the businesses merged, and there are now only four left (Argenta, Hampden, Alpha and LMAS, which has no active Names). It is mandatory that unlimited Names write through a members' agent, and many limited liability members also choose to do so.

====Lloyd's coverholder====
Coverholders are a major source of business for Lloyd's. Their numbers have grown steadily in recent years and in 2021 there were 4,054,<ref name=AnnualReport2021/> producing an increasingly meaningful share of the market's overall premium income. The balance of Lloyd's business is distributed around the world through a network of brokers.

Coverholders allow Lloyd's syndicates to operate in a region or country as if they were a local insurer. This is achieved by Lloyd's syndicates delegating their underwriting authority to coverholders. A coverholder can have restricted or full authority to underwrite specified business on behalf of a Lloyd's syndicate. It will usually issue the insurance documentation and will often also handle claims. The document setting out the terms of the coverholder's delegated authority is known as a binding authority.<ref>{{cite web |url=http://www.lloyds.com/The-Market/I-am-a/Coverholder/Prospective-Coverholder/Tell-me-more-about-coverholders |title=Tell me more about coverholders – Coverholder – Lloyd's |publisher=Lloyds.com |access-date=22 March 2012 |archive-url=https://web.archive.org/web/20120310190019/http://www.lloyds.com/The-Market/I-am-a/Coverholder/Prospective-Coverholder/Tell-me-more-about-coverholders |archive-date=10 March 2012 |url-status=dead  }}</ref>

====Lloyd's brokers====
Outsiders, whether individuals or other insurance companies, cannot transact business directly with Lloyd's syndicates. They must hire an approved Lloyd's broker, who are the only customer-facing organisations at Lloyd's. They are therefore often referred to as intermediaries. Lloyd's brokers shop customers' risks around the syndicates, trying to obtain the best coverage and most competitive terms.

====Integrated Lloyd's vehicles====
When corporations became admitted as Lloyd's members, they often disliked the traditional structure. Insurance companies did not want to rely on the underwriting skills of syndicates they did not control, so they started their own. An integrated Lloyd's vehicle (ILV) is a group of companies that combines a corporate member, a managing agent, and a syndicate under common ownership. Some ILVs allow minority contributions from other members, but most now try to operate on an exclusive basis.

===Financial security===
Lloyd's capital structure, often referred to as the "chain of security", provides financial security to policyholders and capital efficiency to members. The Corporation is responsible for setting both member and central capital levels to achieve a level of capitalisation that is robust and allows members the potential to earn superior returns.

There are three "links" in the chain: the funds in the first and second links are held in trust, primarily for the benefit of insureds whose policies are underwritten by the relevant member. Members underwrite for their own account and are not liable for other members' losses (i.e. liabilities are several, not joint).

The third link consists largely of the Lloyd's Central Fund, which contains mutual assets held by the Corporation which are available, subject to Council approval as required, to meet any member's liabilities. As well as the Central Fund, the third link contains Corporation assets, subordinated debt, and a "callable layer" which can be invoked should the final link require topping up.<ref name=lloydspub/>