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Indeed. Can I ask what does 'become a Lloyds name' mean?
by illwrks 4y ago
Indeed. Can I ask what does 'become a Lloyds name' mean?
- deleted 4y ago[deleted]
- pevey 4y agoIt’s an insurance thing. The capital for Lloyd’s is provided by presumably wealthy individuals, who are called names. This historically is because they are the names underwriting losses. In the past, it literally meant their names would be written under the names of ships preparing for voyage, along with their lines (the amount of cover). Controversially, the ability of less wealthy individuals to become names has increased, similar to being an accredited investor in the US. Inflation makes the real bar lower every year. Insurance is literally gambling, especially if you know nothing about the risks you are taking in.
- illwrks 4y agoThank you, great context!
- jacknews 4y agoLloyds 'names' are liable for insurance losses, and got wiped out in the early 90's IIRC. It was a financial scandal to some extent at the time, and I believe fraud charges were leveled successfully against some of the brokers who sold these 'investments'.
- illwrks 4y agoVery insightful, thank you!