Updated: Aug 20, 2021

The popular name for the Corporation of Lloyd’s. It started in a coffee house in Tavern Street in 1689, and moved, via Lombard Street and Pope’s Head Alley, to the Royal Exchange in 1774. Subsequently it moved into its own building, where it remains. Members are brokers or underwriters. The latter are sole traders although they normally operate in syndicates. The Corporation itself has no liability for the defaults of its members. However, a member must deposit a substantial sum of money before he is accepted. Premiums received by underwriters are placed in a trust fund. Claims are paid out of this fund. Annual audits are compulsory. The Corporation provides standardized documents, shipping intelligence services, a daily newspaper (Lloyd’s list and Shipping Gazette), a claims bureau, and Lloyd’s agents in nearly every important port in the world, Lloyd’s Register of Shipping classifies vessels and gives comprehensive information regarding them. Lloyd’s deals with a vast part of all annual insurance in this country. though not with life assurance. Its main business has been, is, and probably always will be, marine insurance.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.