Briefly explain the “Chain of Security” which underpins the Lloyd’s Market?
Expert Answer
nsurance policies written at Lloyd’s are backed by the unique Llyod’s chain of security. There are 3 level of capital set aside by syndicates , members and Llyod’s itself for the settlement of policyholder’s valid claims.
Link one (Syndicate level assets )-In this premium are held in trust and profits are not released until all the liabilities have been accounted for.
Link two (Member’s fund at Lloyd’s)- Each member must provide enough funds to cover their underwriting at Lloyd’s.
Link three (Central assets) – These assets are available at
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