Reference no: EM132302177

The world’s most famous insurance organization began in Edward Lloyd’s coffeehouse in London. In 1688, ship owners and merchants bought marine insurance from Lloyd’s to cover the risks of sending goods to other countries. In the late 1800s, Lloyd’s of London expanded into nonmarine insurance. Over the years, this association of insurance underwriters has insured some unusual assets—the legs of Hollywood dancers, the voices of famous singers, and the athletic ability of sport stars. Other unusual coverage provided by Lloyd’s have included the following. ?Insurance policies providing protection against crocodile attack in northern Australia. ?Employers buying protection against staff members winning the British national lottery and not returning to work. ?Insurance coverage against death or injury caused by a piece of a disintegrating satellite falling from the sky. Lloyd’s of London is different from other insurance companies. This insurance society consists of investors called Names, who pool their money to cover possible financial risks. The Names profit when insurance claims are less than income. However, when a disaster occurs, the Names have to be prepared to pay for the financial losses from the disaster. In recent years, Lloyd’s has experienced lower profits due to natural disasters, environmental problems, and changing tax laws in Britain. These events have resulted in changes in the organization. Nonetheless, some traditions continue. In Lloyd’s headquarters is the bell from the Lutine, which shipwrecked in 1857. The bell tolls once for good news, twice for bad news.

1. What are the similarities and differences between Lloyd’s and other insurance companies?

2. What actions might Lloyd’s take to expand its operations around the world?