Who is financially liable for underwriting decisions at Lloyd's?

The financial liability for underwriting decisions at Lloyd's is shared across groups of individuals and corporate members. This structure is a key feature of Lloyd's unique marketplace, where both individual members (often referred to as "names") and corporate entities can participate in the insurance risk underwriting process.

Each member, whether individual or corporate, is responsible for their share of the underwriting risks they assume. This means that the financial implications of an underwriting decision can affect all members involved, thus spreading the risk. The system encourages a diverse range of participants, helping to maintain a stable and competitive environment.

In contrast, solely attributing financial liability to only corporate members, only individuals, or only the board of directors overlooks the collaborative nature of risk-sharing in Lloyd's. Decisions are not made in isolation, and all involved parties, including the management and operational teams, play a role in the underwriting process, which collectively contributes to the financial responsibilities tied to those decisions.