TWG’s Introduction to Lloyd’s of London

You may have heard of Lloyd’s of London. For people outside the insurance industry, Lloyd’s often makes headlines when a celebrity takes out an unusual insurance policy.

So, perhaps you first read about Lloyd’s in an article about Tina Turner insuring her legs, Bruce Springsteen insuring his vocal chords, or a food critic insuring their taste buds. While many are introduced this way, there’s often confusion about what Lloyd’s is and what it does. So, let’s get into the details and find out what it means if you see the Lloyd’s logo on your insurance documents.

What is Lloyd’s of London?

Lloyd’s isn’t an insurance company. It is a marketplace where brokers meet with underwriters to negotiate the transfer of risk. Oftentimes multiple Underwriters will be on one policy, allowing them to cumulatively take on more risk than they would have the appetite for individually.

The Lloyd’s marketplace allows individuals to get coverage that they might not be able to get elsewhere. Because Lloyd’s is a marketplace, this means that two Lloyd’s policies may differ substantially. However, one thing that they all have in common is that they are backed with Lloyd’s financial security, so you can feel confident in your coverage. Despite being separate, due to the financial structure of Lloyd’s, all syndicates fall under a single market rating dating back to 1992. Lloyd’s maintains an A+ rating by Standard & Poor’s and an A from A.M. Best.

Who are Coverholders at Lloyd’s?

Simply put, the marketplace has Coverholders who have the authority to quote and bind business. Becoming a Coverholder means that you’ve met Lloyd’s strict criteria such as being financially secure and compliance with all established guidelines.

Once Coverholder status is obtained, a Coverholder has the authority to underwrite specified business on behalf of a Lloyd’s syndicate.

Want to learn more about Lloyd’s of London? Register for our webinar here.

Why is it important that The Westport Group is a Lloyd’s of London Coverholder?

The Westport Group is extremely proud to be a Lloyd’s Coverholder. The Lloyd’s marketplace allows us to get enough capacity to offer industry leaders protection in the case of a disability that would replace higher levels of income than traditional group DI products. The Financial Security of Lloyd’s also gives our clients peace of mind and confidence in our High-limit Long-Term disability products that we provide industry leaders.

And, while there are other companies who are Coverholders at Lloyd’s, TWG distinguishes itself by manufacturing policies that are very different than the policies that are offered by competitors.

TWG’s products are customizable, meaning we build each policy to fit the needs of an individual client. Other companies offer a one-size fits all solution.

This difference has led TWG to lead the market, currently maintaining the largest book of business in the Lloyd’s High-limit disability marketplace.