the role of lloyd’s in insurance
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The role of Lloyd's in insuranceTRANSCRIPT
The role of Lloyd’s in insuranceChristine Finas | English Second Semester
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ObjectiveExplore the 325 years of Lloyd’s history and understand
its role inside the world of insurance
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Summary
The concepts of insurance, reinsurance and the functioning of Lloyd’s market.
The 325 years of Lloyd’s history.
The role of Lloyd’s in the management of some major catastrophes.
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Part 1: Insurance, Reinsurance and Lloyd’s organization today
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1. Insurance
What is “insurance”?
How has the insurance industry and the law of insurance evolved?
Insurer
Subscriber
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1. Insurance
The Assurance Act of 1601
The Great Fire of London in 1666. Nicholas Brabon opens the first fire insurance office in England.
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2. Reinsurance
Reinsurance is a kind of risk transfer.
Reinsurance was explicitly authorized in a law passed in Antwerp in 1609.
Stabilization
Catastrophe
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3. Lloyd’s organization
The Risk Manager The Risk Manager The Local
Insurance Broker
The Local Insurance Broker
The Lloyd’s approved Broker (London)
The Lloyd’s approved Broker (London)
The under-writers (London)
The under-writers (London)
The managing agent
The managing agent
The Syndicates The Syndicates
The Members The Members
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Part 2: The Extraordinary history of Lloyd’s
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1. Lombard Street (1688-1774)
1734: It is the date of the first publication of Lloyd’s list
1764: The French-built Mills Frigate changed the course of the insurance law history.
1769: ‘the gambling den’
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2. The Royal Exchange
(1774-1928)
In 1838 new premises at the Royal Exchange are destroyed by fire
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3. Leadenhall Street and Lime street (1928-current days)
A shelter for people whose houses had been bombed.
1958: Lloyd’s moved to Lime Street
1965: Lloyd’s admitted for the first time foreign members.
1973: Liliana Archibald became the first female Lloyd’s broker.
“ I did not break down the barriers; they were broken down for me by the members of Lloyd’s in a very charming way. ” Liliana Archibald
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Part 3: Important natural and human catastrophes insured
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1. San Francisco earthquake
“pay all of our policyholders in full, irrespective of the terms of their policies.” Cuthbert Heath
At 5:12 am on Wednesday, April 18, 1906 an earthquake struck San Francisco.
Human death toll: 3000
Governments could not supply funds, so the costs are passed on to the insurers. Lloyd’s pays $50 Million in claims.
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2. Titanic
On 14 April 1912 the Titanic, collided an iceberg.
Human death toll: more than 1 500 people died.
The ship was insured for over £1m by Lloyd’s.
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3. The 9/11 terrorist attacks
The 9/11 terrorist attacks completely changed the world’s perception of risk. Indeed before 9/11.
The 9/11 terrorist attacks were Lloyd’s largest-ever single loss.
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Conclusion
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Thank you for your attention
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[1] Bernstein Peter L, Against the Gods: the Remarkable Story of Risk. John Wiley & Sons, September 1996.
[2] Cockerell H. A.L, Lloyd’s of London: A Portrait.
[3] Holland David M. A Brief History of Reinsurance. Reinsurance News, February 2009.
[4] The 1936 American drama film, Lloyd’s of London, directed by Henry King.