MALVERN, PA — The Insurance Information Institute released an issues brief examining the Lloyd’s insurance marketplace, citing growing climate, cyber, artificial intelligence and geopolitical risks as factors driving the need for innovation and capital resilience in the insurance sector.
The brief, titled “Lloyd’s: Trends and Insights,” outlines Lloyd’s structure and its role in underwriting specialty and complex risks globally.
Lloyd’s is not a single insurer but a marketplace of independent businesses that underwrite insurance risks. Its structure separates capital providers from underwriting and claims operations, a model the institute said allows for flexibility.
Sean Kevelighan, chief executive officer of the Insurance Information Institute, said Lloyd’s connects global capital with risk and helps U.S. businesses and insurers manage complex exposures.
The United States is Lloyd’s largest market, accounting for about half of its global premium volume, according to the brief. U.S. policyholders generated approximately $32.7 billion in gross written premiums, and Lloyd’s pays an average of $13 billion in U.S. claims annually.
In 2024, Lloyd’s provided more than $20 billion in U.S. surplus lines capacity, representing about 16 percent of that market, with property coverage accounting for the largest share of business.
The brief also details Lloyd’s capital framework, known as the Chain of Security, which supports all policies written in the marketplace. Independent rating agencies assign the same financial strength ratings to each of Lloyd’s syndicates under that structure.
Lloyd’s operates in more than 200 territories and works with more than 3,300 coverholders authorized to underwrite policies on behalf of its syndicates.
According to the institute, Lloyd’s has supported recovery from major disasters including the 1906 San Francisco earthquake, the September 11 attacks, Hurricane Katrina and Hurricane Irma, as well as more recent hurricanes and wildfires.
The brief notes that Lloyd’s is investing in initiatives such as the Lloyd’s Lab and alternative capital platforms, including parametric insurance and artificial intelligence-driven risk analytics, to address emerging risks.
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