London is the world's leading centre for marine insurance. Physical risk in shipping arises from shipping operations, cargo loss or damage as well as shipbuilding and London provides a solid infrastructure for the insurance of these risks. Whether placed through Lloyd's of London or company members of the International Underwriting Association (IUA), London insurers are able to handle the insurance needs of the shipping community. Cover provided includes hull insurance, war risk insurance, loss of profit/freight insurance, detention insurance, strike insurance or uninsured legal expenses (defence) cover.
Commanding 18% of the hull premium market in 2011 (source:
IUMI), London currently has the largest share of global
marine insurance premiums, ahead of the USA, Japan, Germany
Lloyd's is not an insurance company but a society of members,
both corporate and individual, who underwrite in syndicates
on whose behalf professional underwriters accept risk. The Lloyd's
market is made up of 51 managing agents running 80 syndicates.
Supporting capital is provided by investment institutions, specialist
investors, international insurance companies and individuals.
Only 8% of the Lloyd's market covers marine risk.
All of the world's top 20 insurance and reinsurance
companies are active in the company market, a key segment of
the London Market, and many of these are active in marine insurance.
All are members of the International
Accredited Lloyd's brokers place risks in the Lloyd's market on behalf of clients. These brokers use their specialist knowledge to negotiate competitive terms and conditions for clients.
There are 162 firms of brokers working at Lloyd's, of which
about 30 place the bulk of marine business, with business becoming
increasingly concentrated in the larger brokers. Most placings
are co-ordinated by the brokers with several underwriters, each
accepting a percentage of the overall risk. The interests of
many of these brokers are represented through the
London & International Insurance Brokers Association.
Lloyd's operates an accreditation process for brokers seeking access to the Lloyd's Market. All brokers must satisfy all relevant regulatory requirements. Lloyd's performs a careful assessment of all applicant brokers, affirming their reputation and financial standing and investigating the character and suitability of officers and employees before making the decision to accredit. Firms receive provisional accreditation for three years before becoming entitled to use the term "Lloyd's broker".
The UK is the world's leading centre for the management of
P&I (Protection & Indemnity) Clubs which provide third party
liability and legal expenses insurance on a mutual basis for
owners, operators and charterers of ships.
The 13 major international Clubs, insuring about 90% of world
merchant tonnage, all maintain management offices in the UK.
As insurers of the very wide variety of legal liabilities associated
with shipping, including cargo, collision, environmental and
personal injury claims, the Clubs manage much of the maritime
litigation in London and around the world.
Their trade association, the International
Group of P&I Clubs is also based in London. The Group represents
ship owners' marine insurance interests in the development of
maritime regulations and legislation through the International
Maritime Organisation and other national and international bodies.
It also monitors the operation of the International Group Clubs'
co-operative reinsurance placement, the world's largest single
marine reinsurance placing, a substantial part of which is reinsured
through the London market.
Arthur J Gallagher (UK)
Bilbrough (A) & Co (London Steamship)
BMS Harris & Dixon Marine
Lloyd's of London
Miller Insurance Services
Steamship Mutual Underwriting
Tindall Riley Marine