"at the heart of the Lloyd’s brand story is the phrase “constant originality”. Based on your research describe where this is supporting the organisation to remain the leading insurance market". Good afternoon ladies and gentleman. Welcome to the presentation. Today, I am going to discuss the following question: ”How being constantly original supports Lloyd’s to remain the leading insurance market?” Before I start describing and analyzing the true effect of this unique brand idea on maintaining the status of Lloyd’s as the world’s leading specialist insurance market, we need to understand what it really stands for. Being constant is about tradition, good faith, security and worldwide reputation for honoring its word Originality refers to the Lloyd’s creativity in coming up with innovative solutions for risks; its willingness to be different; and the adaptability that has enabled Lloyd’s to survive and prosper for over 300 years. These two words summarize all the best qualities that make Lloyd’s market really different. This brand idea is by far the strongest in the global insurance market, and it has remained so for many years only because Lloyd’s has done everything possible to be consistent with this brand idea in everything it did and at every opportunity, which was the most important factor that helped Lloyd’s remain its leading position in the insurance market. In other words, it is the most simplified expression of what Lloyd’s really stands for. Let’s now see how Lloyd’s is being constantly original and how it is contributing to its reputation: Firstly, throughout the history, Lloyd’s has often been the first to insure world’s largest, new, unusual, most individual and complex risks, when many others were unwilling to do so. Lloyd’s specializes in risks that hard to price, large or otherwise difficult to quantify and understand. From oil rigs and bridges to celebrity body parts, from airlines and sporting events to global banks, millions of people at home and at work are covered at Lloyd’s. It insured the first ever F1 night race. Lloyd’s first covered four 4 Boeing 707’s belonging to Chinese airlines. It handles international project such as transport networks, satellites, Wimbledon and the Oscars. In 1904 Lloyd’s was the first one to write motor car policy and 1911 it was the first to write aviation policy. insured the first commercial space flight in 2004 (largest market for space insurance); Things they insure: smile, legs, American footballers legs, European soccer players kneecaps Beckham, Ronaldo; bodyparts, chesthair; Coffee tasters tongue for 5mln $; wine tasters nose for 10mln $; Reputation has been built on insuring risks that others couldn't, such as terrorism, natural disasters, and even cyber crime. The Lloyd's name was built on foundations of integrity, trust and high ethical standards. How many other organisations could say that they’ve been involved with naval battles, sports tournaments and space shuttle launches? Or that they helped rebuild a city devastated by earthquakes? No insurer has gone so far before.
Give some examples.
The main question is how Lloyd’s has achieved that? It is about the unique structure of the market, which is also called as subscription market (the world’s largest subscription market), where many underwriters collectively insure only part of the risk. In other words, the risk is shared among many underwriters, and a lot of most complex and unusual risks would have never been insured if only one company had to insure the entire risk. Also, this subscription market means that large and complex risks can be placed quickly and efficiently. Another important factor that allows many underwriters accept complex risks is the existence of chain of security which includes central assets of more than £2bln. This provides security and confidence for both capital providers and policyholders. Without this strong financial backup, many brokers would not be able to attract...
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