Nuts and bolts of Lloyd’s
- Lloyd's is the place where they meet. Lloyd's is a huge room consisting of many floors with many boxes. Underwriters for the syndicates sit at the boxes, while brokers run around from box to box carrying risks. The broker sits with an underwriter, describes the risk, describes the coverage, and tries to negotiate a rate. When they agree, the underwriter binds the coverage for the syndicate. The broker then goes on to other underwriters until the risk is fully placed. The syndicate is backed by its individual names, each one of which has subscribed for a certain amount of premium, which will translate to a certain percentage of the risk. In actuality, it is only the name, the individual, who is taking the financial risk.