LLOYD’ S OF LONDON
BY: JONAS VASSALLO PARTNER, LLOYD’ S OPERATIONS MANAGER, JONES DESLAURIERS INSURANCE
Lloyd’ s Of London Popular In Canada Too
We here in Canada are fortunate to benefit from a rich economy, with diversified trading partners across the globe and growth in industries ranging from financial services to oil to real estate. Although our top exports vary by province, it’ s interesting to take a look at what valuable commodities we have to offer the world: chemicals, oil, fish, machinery, lumber, wheat, and many other types of agricultural and natural resources.
Although many people are not aware, Lloyd’ s of London has been a prominent force fueling that growth by providing all types of insurance to millions of Canadian businesses and individuals across the country. Dating back more than eighty years, its first Canadian office was established in Montreal back in 1932 and was known as“ Lloyd’ s Attorney in Fact.”
Interestingly, Lloyd’ s is not technically a company but a corporate body governed by the Lloyd’ s Act 1871 and subsequent Acts of Parliament. Lloyd’ s operates as a partially mutualised marketplace within which multiple financial backers, grouped in syndicates, come together to pool and spread risk. Last year, the Lloyd’ s market wrote a mind-boggling 2.9 billion pounds in gross premiums in Canada— which equates to nearly 50 billion in Canadian dollars.
Over the five-year period from 2011 to 2016, Lloyd’ s led both the commercial property market and liability market, grossing twice as many premiums as its nearest competitor. In the reinsurance market, Lloyd’ s comes in a close second to Swiss Re, with 486 million dollars across Canada in 2016 – a 17 percent market share. Lloyd’ s largest classes of business in Canada are general liability( 40 percent), property( 36 percent), and marine( 10 percent).
Jones DesLauriers has had a relationship with Lloyd’ s for over twenty-five years and has come to rely on its depth of experience, resources, and outstanding coverage options for a broad clientele. Our Lloyd’ s business operates in two main ways: through open market placements and binder business.
Open market placements tend to be very large accounts or one-off complex risks, and can be used as a vehicle for brokers and managing general agents( MGAs) to access the London market without having a contract to place business. The capacity on the open market is vast with the ability to put up large property limits utilising the unique subscriptions benefits that Lloyd’ s can offer. On the property side, limits into the billions can be achieved, and on the casualty side, limits into the hundreds of millions are available.
Binder business is when the broker or MGA has a contract with underwriters in London to underwrite a line of business on their behalf. The broker or MGA can set up binders for specific programs or they can be broad enough to write various types of everyday Small and Medium Enterprise( SME) business, such as retail, realty, office, and small trades.
If you would like to schedule a consultation on how Jones DesLauriers and Lloyd’ s can accommodate your needs, please contact a JDIMI team member at( 416) 259-4626 or visit us online at www. jdimi. com. +
Jonas Vassallo has over 10 years of experience placing business in the Lloyd’ s insurance market. Working alongside the firm’ s Industry Leaders and Business Specialists, he is responsible for the management and underwriting results of insurance products supported by various Lloyd’ s syndicates. Jonas’ experience includes placing both general and specialty insurance, creating sector specific products and finding insurance solutions for complex and unique risks.
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