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L l oyd’s : THE WORLD’S SPECIALIST INSURANCE MARKET

L l oyd’s : THE WORLD’S SPECIALIST INSURANCE MARKET. THE HOME OF INTERNAtIONAL INSURANCE. From oil rigs to Ming vases , nothing surprises us. . 2. THE HOME OF INTERNAtIONAL INSURANCE. From origins in marine insurance, Lloyd’s has been covering risks for more than 300 years

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L l oyd’s : THE WORLD’S SPECIALIST INSURANCE MARKET

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  1. Lloyd’s: THE WORLD’S SPECIALIST INSURANCE MARKET

  2. THE HOME OF INTERNAtIONAL INSURANCE From oil rigs to Ming vases, nothing surprises us. 2

  3. THE HOME OF INTERNAtIONALINSURANCE • From origins in marine insurance, Lloyd’s has been covering risks for more than 300 years • Lloyd’s is a market where businesses buy and sell insurance • What we protect ranges from offices and factories to jewellery, aircraft and the new World Trade Center 3

  4. WHY LLOYD’S? You’re in experienced hands: our market brings together an exceptional level of knowledge and underwriting experience You’re protected: the Corporation of Lloyd’s monitors the market’s performance and approves the capital base for the payment of valid claims by the market You’re connected: the Lloyd’s market can be accessed from many places in the world 4

  5. How the market works Getting covered Corporation of Lloyd’s Please click icons for more info… The policyholder Members The brokers Managing agents The coverholders Syndicates 5

  6. HOW YOUR RISK IS WRITTEN • Once he has struck a deal, the broker returns to you for approval Imagine that you have several factories to protect, with specific and complex needs Your broker visits Lloyd’s and goes to the Underwriting Room. Here he can meet interested underwriters face to face and ‘shop around’ to negotiate the best package You go to your broker. He advises that Lloyd’s has the expertise for this risk as well as the robust capital structure from which valid claims can be paid Since your risk is large and complex,it may mean several different underwriters sharing the risk. This means you can get cover for very large and complex risks Since your risk is large and complex,it may mean several different underwriters sharing the risk. This means you can get cover for risks that might otherwise be uninsurable. • In the event of a claim, you simply go back to your broker to set the process in motion 6

  7. WELCOMING THE WORLD Lloyd’s covers risks from around the globe 7

  8. LLOYD’S can be accessed from 200+ countries and Territories worldwide Source: Lloyd’s Annual Report 2012. All figures as at 31 December 2012 8

  9. LLOYD’S FINANCIAL STRENGTH Our Chain of Securityand independent ratings 9

  10. LLOYD’S FINANCIAL STRENGTH • One of many things that makes Lloyd’s different: the Chain of Security • It provides the financial strength that backs all insurance policies writtenat Lloyd’s • It means every policyholder can have full confidence that all valid claimswill be paid 10

  11. OUR CHAIN OF SECURITY • LINK ONE:SYNDICATE ASSETS(£41,126m/US$67,035m/€50,585m) • Before writing business, a syndicatemust put up funds to cover their own share of claims • These funds are the first port of callwhen paying policyholder claims 11 Figures correct as at December 2012

  12. OUR CHAIN OF SECURITY • LINK TWO:MEMBERS’ FUNDS AT LLOYD’S(£15,660m/US$25,526m/€19,262m) • Every member (corporate or individual) must provide sufficient capital to support their underwriting • These funds are held in trust for the benefit of policyholders and used only if the syndicate assets have been exhausted 12 Figures correct as at December 2012

  13. OUR CHAIN OF SECURITY • LINK THREE:LLOYD’S CENTRAL ASSETS (£2,485m/US$4,051m/€3,057m) • The Central Assets are available, at the discretion of the Council of Lloyd’s, to meet any valid claim that cannot be met from the resources of any member further up the chain 14 13 Figures correct as at December 2012

  14. INDEPENDENTLY ASSESSED In the eyes of leading ratings agencies,Lloyd’s is viewed as enjoying robust capital reserves: • Standard and Poor’s: ‘A+’ (strong) • FitchRatings: ‘A+’ (strong) • A.M.Best: ‘A’ (excellent) Lloyd’s Annual Report 2011 14

  15. FIT FORTHE FUTURE Cybercrime and beyond 15

  16. Fit for the future We write cover for 21st century risks Cybercrime: we’re a leading provider of data-breach and data-security insurance Carbon Credits: we write cover to protect against a drop in the value of carbon credits caused by changesin legislation 16

  17. Fit for the future We create processes for 21stcentury risks The Exchange: secure andinstant electronic communicationbetweenbrokers and underwriters Claims processes: deliveredanaverage of 39% reductionintransaction times for 16,000claimsin 2011 17

  18. Lloyd’s: Your risk Management, managed In summary 18

  19. Why lloyd’s? Lloyd’s means: • Expertise: a proud 300-year track record, but with a total focus on the risks of the future • Strength: our Chain of Security is designed to ensure that all validclaims will be paid • Accessibility: we’re open for business in 200+ countriesand territories 19

  20. WE LOOK FORWARD TO WORKING WITH YOU 20

  21. WHO’S WHO? Policyholders require insurance coverAll over the world, businesses, organisations, individuals and indeed other insurers need insurance to protect themselves against risk.Theybrief either a broker or coverholder on whatthey need. Brokers place risksMost risks at Lloyd’s are placed by brokers. Their activities are governed by their country’s own regulator but they must also meet Lloyd’s own eligibility criteria. Coverholdersplace risks Alternatively, clients can go to local coverholders. They work on behalf of a syndicate, and are authorised by a managing agent to write a certain amount of international business for the syndicate. Click here to return to the main presentation

  22. WHO’S WHO? Members provide the capitalMembers provide the capital to support underwriting in the Lloyd’s market. They include some of the world’s largest insurance companies, listed companies, individuals and limited partnerships. Syndicates write the insurance risksSyndicates accept the risks on behalf of the members. Their underwriters negotiate with brokers to arrive at the costs, terms and conditions of an insurance agreement.Managing agents manage the syndicatesThese companies are set up by members to manage one or more syndicates. Managing agents employ the underwriting staff and handle the day-to-day running of a syndicate. Corporation of Lloyd’s supports the marketThe Corporation owns the Lloyd’s brand and provides the infrastructure and licences for the market to operate internationally. It reviews and approves business plans, and manages the Central Fund – the capital that provides that all claims can be paid. Click here to return to the main presentation

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