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.
When this chaos is imposed on cases filed in what is known as the "rocket docket," such as that employed in the Eastern District of Virginia, all hell breaks loose. There, cases go from filing to trial in less than 12 months. To say that defense decisions in the rocket docket need to be made quickly is an understatement. Recently, we had the opportunity to gauge Lloyd's of London's performance in this setting, and they did not perform admirably.
Please watch the video to learn more, or Contact us if you have any questions.
We have included a transcript of the video below:
Is Lloyd's of London Still Relevant?
So here's the issue. Lloyd's is different from some of the U.S. companies and some of the international insurance companies. Lloyd's is a marketplace, Lloyd's of London. It's a place underwriters go to take pieces of an insurance policy. By pieces,I mean, they'll take a certain percentage. You might have five, you might have 10, you might have 15 different underwriters taking different percentages of the whole or 100% of the policy. So, it's a marketplace. Underwriters go in there and they decide what they want to invest in. It's not one single entity.
The question is, is Lloyd's still relevant? It did serve, and it does serve, a very important purpose in insurance. They insure things that other folks won't insure. They insure risks that others won't touch. Some of the things we've seen that raise significant concerns. We had a large corporate claim. It was a technology company, got sued for an intellectual property type of infringement, and it cost a considerableamount of money to defend. We're...