What Does Lloyd's of London Mean?
Lloyd's of London is a marketplace for international insurance players, including syndicates and brokers. Based in London, Great Britain, it started as a marine insurance seller in the 17th century but is now known for selling insurance to cover unusual risks.
Insuranceopedia Explains Lloyd's of London
Lloyd's does not call itself an insurance company but a marketplace for insurance. What this means is that it acts more like a corporate hub for syndicates, brokers, coverholders, and insurance buyers. Insurance companies usually converge there to work together for risks that need more than one insurer, making Lloyd's a congregation of reinsurers.
Lloyd's was founded In the 17th century as a coffee shop that also sold insurance for ships and cargo transported in those ships. Today, it has grown into a formidable international company. It occasionally attracts media attention for selling unconventional insurance like coverage for celebrities' body parts.