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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