Seven Lloyd’s Facts for Insurance Awareness Day
Lloyd’s of London Global Headquarters
Today is Insurance Awareness Day, and as a Lloyd’s of London coverholder, we’re celebrating by sharing seven interesting facts about Lloyd’s.
The Lloyd's headquarters, located in London, England, is an iconic piece of modern architecture designed by Richard Rogers. Completed in 1986, it features an "inside-out" design, with services like elevators and water pipes on the exterior to maximize internal space.
Unlike traditional insurance companies, Lloyd's operates as a marketplace where multiple financial backers, grouped in syndicates, come together to spread risk.
Lloyd's maintains a Central Fund, a financial safety net funded by annual contributions from its syndicates. This fund is used to ensure that policyholders' claims are paid even in the event of large-scale disasters or syndicate failures.
Lloyd's has been involved in many famous claims, including the Titanic sinking in 1912. Despite the large claims arising from the tragedy, insurers paid out in full within 30 days. The organization has a reputation for paying claims promptly and fairly.
Lloyd's is known for insuring celebrity body parts. They have covered Tina Turner’s legs for $3.2 million, Bruce Springsteen’s voice for $6 million, and America Ferrera’s smile for $10 million.
Lloyd's has a long history of providing war and terrorism insurance. During World War II, Lloyd's played a crucial role in insuring Allied shipping against the risks of war.
In the aftermath of the 1906 San Francisco earthquake, many insurers were paying out only 80 percent of claims on the grounds of not being able to determine if the cause of losses was from the earthquake or the proceeding fires. Cuthbert Heath, one of Lloyd’s leading earthquake underwriters at the time, faced an extensive bill, but he honoured it and famously instructed his San Franciscan agent to “pay all of our policyholders in full, irrespective of the terms of their policies”.
The earthquake cost Lloyd’s over $50m - equivalent to more than $1 billion in today’s dollars. Heath’s attitude toward the San Francisco claims cemented Lloyd’s position in the global market and highlighted their excellent reputation for paying valid claims, which still stands true today.
Sutton Special Risk has been a Lloyd’s coverholder for over 45 years. Lloyd’s and our other carrier partners share our appetite for risk and our willingness to customize plans to suit our clients’ needs.