GIM1210 - The UK insurance market: Lloyd's

Lloyd's of London is not an insurance company itself, but an association of underwriters. At one time these were all individuals, but in more recent years companies have supplied most of the capital in the Lloyd’s market.

The underwriting members of Lloyd's, or names, although grouped together in syndicates, are each insurers carrying on business on their own account; they may not accept business except through underwriting agents or active underwriters.

An underwriting agent is a person who is authorised under a binding agreement to accept insurance risks on behalf of another person and, more particularly, a person authorised to fulfil this function on behalf of underwriting members of Lloyd's. An underwriting agent sometimes acts for both names and other insurers, often non-residents, especially in the reinsurance market. The underwriting agent employs the underwriters and other professional staff.

Syndicate accounts and the returns of corporate members of Lloyd’s are dealt with in the Large Business Service. Individual members of Lloyd’s are dealt with in West Yorkshire Personal Tax Unit. The taxation of Lloyd’s underwriters is not covered in the General Insurance Manual. Detailed guidance can be found in HMRC’s Lloyd’s Manual.