A principal aim of regulation is to ensure that policyholders’ claims can always be met even in years where the claims made are much higher than the premiums received.
A series of financial requirements for Lloyd's Names aims to make sure that this can always be achieved. These are (in order of security):
Lloyd's requires an admission fee from applicants and an annual subscription from all members. It also makes a series of financial requirements of its members and regular checks are made to ensure that these requirements continue to be met, for example ensuring that capital requirements are met for solvency purposes ( LLM1220).