Lloyd’s of London Review
Certainly one of the most famous named in banking and insurance, Lloyd’s has built up an incredible reputation over the years starting with its humble beginnings in a coffee shop in 1688. Since then, most people generally recognize the company for its more high-profile insurance policies that cover celebrities and what makes them famous, such as their legs and smiles. There is no doubt that this type of insurance garners headlines which has help seal the Lloyd’s brand around the world.
However, Lloyd’s has a more contemporary side when it comes to providing insurance for its members and in particular businesses. It does pay to remember that Lloyd’s is really more of an insurance broker which is unlike a traditional insurance company. In the US, Lloyd’s insurance covers virtually all classes of business with a few exceptions;
- Financial Guarantees
- Workers Compensation
This means that you will need to go elsewhere if you are looking for this type of insurance for your business. Still, there are plenty of different types of policies that the Lloyd’s networks provide for its members or subscribers as they are sometimes called.
About Lloyd’s of London
Today, there are over 200 registered Lloyd’s brokers along with a network of over 4,000 local coverholders that are spread around the world. The coverholders and brokers work to bring in business to Lloyd’s market in which the company prices and underwrites the risk. The capital that is available is provided to its customers on a subscription basis. This means that Lloyd’s underwriters work together as syndicates which in turn underwrite the risks.
This model has led to Lloyd’s providing substantial choice for its subscribers along with plenty of flexibility in many of the policies available. When combined with the financial security offered by the company, it’s no surprise that Lloyd’s is the leading insurance platform operation in the world today. This is due in large part to the reputation and longevity of the company itself.
Again, it must be noted that Lloyd’s is not an insurer like you find with State Farm, AIG, and other insurance agencies. Instead, Lloyd’s is an independent company along with being a regulator that strives to protect the reputation of the market through research, reports, and proper analysis so its subscribers can use the services to their advantage.
Pros of Lloyd’s of London
There are a number of advantages that Lloyd’s offers. However, this should be tempered by the fact that they are not a traditional insurance company. In essence, they are more akin to being an independent insurance agent that helps their subscribers find a number of options for them. Because of this, they are not really comparable to a typical insurance company. Still, there are certain advantages that they offer thanks to their unique company structure.
Arguably the best reason to use Lloyd’s is because of their well-founded reputation. When you consider that they have been in business since the late 17th century, this means that they are not going anywhere. Their representatives will be there for you, night and day to help answer questions, find new policies, or provide advice if you are looking for a more unique type of insurance.
A.M. Best Rating:
A.M. Best is one of the premier insurance ratings agencies in the marketplace. A.M. Best has given Lloyd’s an “A” rating with a stable outlook effective July 21, 2016. This is a great rating and should provide peace of mind to anyone who chooses Lloyd’s for their insurance needs.
Perhaps the highlight of the services that are offered by Lloyd’s is how they treat their customers. Subscribers are treated with the highest regard mainly because of the cover-holders and brokers who work directly with them to find the right policy for their needs. While the company is somewhat limited when it comes to finding and providing all types of insurance, it does offer plenty of choices and works with subscribers so that their needs are met.
In addition, the actual service will depend on the coverholders themselves who operate as independent agents within the company. While not exactly a franchise system, it does work to a large degree in that manner so you may receive different levels of service depending on the coverholder that you choose. The company itself is generally quick to respond and provides ample services towards helping subscribers get the best insurance for their needs.
Reviews from BBB:
It should be noted that Lloyd’s Insurance is not affiliated with the Better Business Bureau (BBB). Therefore, the company has no rating with them. This should not be seen as a disadvantage since Lloyd’s is headquartered in London. However, it should be noted that none of their coverholders or brokers who reside in the US have signed up their business with the BBB. Certainly not a deal breaker, as there are plenty of other means to determine the quality of Lloyd’s business.
Again, there is no single product per say that is offered by Lloyd’s itself, only the ones that they have access to from other companies. This means that you can find a wide number of policies provided by other insurance companies.
There are many people who use Lloyd’s to find the right policy for their needs. Thanks to their insurance market, there are competitive policies on a wide range of subjects that you can choose from in order to get the proper backing needed for the home, vehicle, or other types of property.
We particularly like Lloyd’s because it fills some unique niches for hard to place high risk cases. Lloyd’s also has a good Annual Renewable Term (ART) product for clients looking to lock into term for a shorter period of time, i.e. one year term limits.
In addition, for clients considering life insurance without a medical exam, you may find an option with Lloyd’s. If you are looking for your everyday household names, you may want to look elsewhere.
Disability Income Insurance
One area in particular where Lloyd’s shines in in the realm of disability insurance. If you have a pre-existing condition and cannot get covered or if you are looking for high dollar disability insurance coverage, Lloyd’s is a great option.
There are certain hazardous occupations or dangerous hobbies that the typical insurance company will avoid. However, Lloyd’s will provide long term disability insurance to those who due to a hazardous job or lifestyle, or a pre-existing condition cannot find coverage.
Lloyd’s is also good for businesses. In particular, Lloyd’s of London is great for businesses that need high value disability insurance for a buy-sell agreement or need coverage for key person insurance.
One of the areas where Lloyd’s excels is the coverage of more exotic policies such as hurricane, earthquake, flood, or other natural disasters. Because of the strong base of support that is offered by the network overseen by Lloyd’s, many businesses have coverage for different types of catastrophic events. The expertise by the coverholders along with the long tradition of being in business that Lloyd’s provides offers greater peace of mind.
Advice on Lloyd’s of London
When you take in all the advantages, Lloyd’s is really best for those who are looking for the right insurance policy for their particular needs. This is because the network they operate is backed in some respects by the Lloyd’s name, so high quality is their forte. So, if you are looking for a specific type of high quality insurance policy that meets your high standards, Lloyd’s is a good place to start. At the very least, you will get some expert advice on the policies that are available in the network itself.
If you are in the market for life insurance, TermLife2Go can meet your needs. However, if you are looking for a more exotic type of coverage, such as hurricane coverage or insuring your legs, you will want to contact a coverholder or broker who lives in your community. They are the ones with the access to different insurers in the network. You simply start with the category and then compare the different policies being offered. The coverholder will go over the selections and help you find the one that is best suited for your needs.
It is different to say what types of drawbacks exist at Lloyd’s considering that they are an insurance market and not an insurance provider. You will need to keep this in mind before choosing their services.
This means that Lloyd’s itself does not handle the claims, but instead the insurance company that you have chosen will do the work. Admittedly, it can be a little confusing since Lloyd’s is such a large part of the process. Still, Lloyd’s can help with certain aspects of the process such as providing contact information and perhaps alternate routes if your insurance provider is not reachable. However, do not expect any direct help from Lloyd’s if you are filing a claim.
Advice on Lloyd’s of London
Here, you should be aware of the limitations when it comes to the services of this insurance network. All too often, business owners and individuals who take advantage of the many different policies provided may believe that Lloyd’s covers everything. Plus, you may be able to find better deals outside the network depending on the type of coverage that you are seeking.
Therefore, Lloyd’s may be best suited when you have a specific need that may fall outside standard coverage such as earthquake, tornado, or hurricane insurance. This is because the company’s network is geared towards providing services that may go outside the normal boundaries of insurance companies.
There are certainly pros and cons when it comes to working with the Lloyd’s insurance network. On the one hand the level of service is exceptional. This is because the coverholders have a strong interest in seeing that you get the right type of long-term coverage. Lloyd’s is a great place to start for businesses that are looking for basic coverage and provides more unique policies that may affect your area such as natural disasters.
However, Lloyd’s does have its limitations which means that you may find yourself shopping around with other insurance networks or agents to find particular policies such as workers comp or standard life insurance. Still, Lloyd’s is a highly respected name for a reason when it comes to insurance coverage. If you are looking for a particular type of business policy combined with special coverage for unique situations, then Lloyd’s is the answer.
However, if you are looking for the best life insurance coverage available, you will be better off looking at an agency that offers Lloyd’s as well as dozens of other top rated carriers. An agency such as TermLife2Go.
We specialize in placing our clients with the most appropriate company based on each company’s niche and each client’s unique need, health and lifestyle. We help our clients find the most appropriate coverage, with service second to none.
So, what are you waiting for? Give us a call today or visit our Term Life Insurance Quotes page and see what we can do for you!
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