DEFINITION of 'Lloyd's Of London'
A British insurance market where members join hands as syndicates to insure and spread risks of different businesses, organizations and individuals. The syndicates are specialized in different types of risks and each syndicate decides which type of risk to insure. Its main purpose is to act as an intermediary between clients, underwriters, brokers and insurance companies.
BREAKING DOWN 'Lloyd's Of London'
Lloyd's of London acts simply like any market where buyers represent businesses or clients who want to hedge different risks. Buyers look to purchase protection (insurance policies) and sellers represent members who provide and sell protection against risks faced by these businesses or clients. The market also includes brokers who help buyers and sellers meet an optimal match and managing agents who handle syndicates on behalf of members (the ones who provide the capital).