The paper "Analysis of the Lloyds Insurance Market" is an outstanding example of a management case study. Lloyds is known to be one of the specialists that deal with insurance and reinsurance market. Its operation has traced back since 1688. Its operation has taken over 100 countries making it be the fifth-largest global reinsurer and the second-largest global insurer. Occasionally, it has been known to offer insurance services on various emerging issues such as complex risks, and unusual happenings. This has made Lloyds ensure a variety of industrial companies which has made it enjoy better financial security and superb ratings. Essentially, Lloyds is known to be one of the most progressive and innovative insurance industry.
Its operation is described by around one hundred and eighty brokers and fifty-five managing. As James (2007) itemizes, it is widely defined by its aspect of serving the insurance market rather than the company making it suffice well as a convention point for a variety of agents to pool risk. Consequently, the entity of Lloyd can be traced back in the seventeenth century to Edward Lloyd, who was believed to be a coffee owner.
During this period, the wealthy merchants expressed their mutualism aspect by identifying the risk of loss of the ship that would occur. Originally, Lloyd was believed to be a marine market. However, due to its noble ideas, non-marine policies were introduced towards the end of the nineteenth century as part of their mission. According to Beeman (2005), the management of Lloyd established various policies that covered the era of the UK chief taster, Gennaro Pelliccia up to various aspects of the real estates.
Some of its services include insuring investments in politically unstable countries and climatically dangerous areas. Conspicuously, the Lloyds insurance policies were backed by the so-called, ` Names’ . These are believed to be some of the wealthy British investors who had their names written off in the face of each policy. Their role was to participate in the one-year venture syndicate that would ensure mainly the maritime risks. They participated in one-year venture syndicates to insure risks, mainly the maritime risks. This made them earn some part of the profits or they would otherwise pay their share of the losses as stipulated by the prevailing conditions.
This mode of operation deemed successful in the maritime business. As time went by, Lloyd operations became more complex as it also explored the non-maritime business. This made the situation to be difficult for the syndicates to stay on and had to close their business after three years. Their mitigation, strategies included; reinsuring the remaining syndicates from next year's account. Additionally, they provided the worded policies that had no monetary boundaries in insuring so as to gain the US insurance market.
This proposition has a positive impact on its competitive advantage over the US insurers who had established. Apparently, by the 1960s and 1970s, the effects of pollution, asbestosis and health hazards had turned out to have daunting effects. As noted by Beeman (2005), this led to huge losses being experienced due to the lawsuits that were being filed. The so-called `names’ faced their personal liability as the original policies did not have the monetary limits. The companies turned to their insurers who in turn had to face their reinsurers who were mostly Lloyds’ syndicates.