The question of whether Lloyd's of London is still relevant
in today's insurance market is a good question for corporate
policyholders to consider. On the one hand,Lloyd's plays an
important if not crucial role in the U.S. market. They are known to
ensure risks that others will not touch. They are also known for
using innovative policy language.
However, Lloyd's of London is not an insurer. Rather, it is
a marketplace for underwriting risks. For a typical Lloyd's of
London policy, there is no single entity insuring the risk. Rather,
underwriters of various corporate and non-corporate structures take
portions of the risk. Each underwriter gives its two cents on what
they want to pay. If there may be no lead appointed, it is not
uncommon for underwriters to disagree as to how a claim should be
paid or defended. This can lead to chaos.
