History of Lloyds

Manawatu Times, Volume 68, Issue 205, 30 August 1943, Page 6

History of Lloyds

LITTLE CITY OF INSURANCE Virtually the London coffee-house of Edward Lloyd, founded in 1686, has grown into Lloyds, one of the world centres of insurance. The history of this remarkable transition was briefly unfolded to members of the Palmerston North Citizens’ Lunch Club at their weekly meeting on Friday by Mr. B. F. Prosser. Insurance against loss at sea, he said, dated a very long way back, probably even to King Bolomon's day. As international commerce increased it became necessary to take steps against fraud and misrepresentation, and in 1601 a Court of Assurances was founded. About the middle of the 17th century coffee-houses became popular in London with, among other sections of the public, insurance underwriters. It became necessary, therefore, lor the brokers, througn whom the underwriters effect insurance, to visit tiiese houses, of wliicii one of the most popular was Lloyds, in order to waive up their policies. xu 1769 dissaasiaction witli the

management of the liouse led to a breakaway of a large and innuential section oi tho under »> liters. Tney established a new Lfioyas coffee-house, which ultimaieiy superseueu tlie older nouse.

Anu witn tne change the transition from a business run xor tho personal profit oi its master to a busmens owned anu uirected by tne underwriters had tanen piace.

The A'japoieomc Yvars, winch begun in 1796, urougnt a large increase in business and greater uependence by naval and mercantile interests on Uoyds for providing snipping intelligence. But it was in tue fieiu oi patriotic endeavour iu the interests of ex-servicemen aud their dependants, for whom in those days no official provision was made, and

to provide lifeboat and coastal signals services, that subscribers took a leading part.

awo important moves in the early A9tn century, aimed largely at stamping out uuuesirables, were tho limiting or subscribers to merchants, bankers, underwriters and insurance uroxers, and the maxing oi uumission more difficult. To protect Lloyds interests there began in 1811 the appointment of agents, oi whom there are now 1500, including sub-agents, throughout the world. Binco 1774 Lloyds has been operating in the lioyai Exchange buildings, and when they were destroyed by fire in 1838, it was temporarily housed elsewhere until the new itoyal Exchange building was opened by qjueen Victoria in 1844. With that move the last link with the old coffee-house system was gone.

During the next 25 years three important points in tue development of Lloyds were: (1) The definite emergence of the underwriters as the controlling body; (2) tho changes produced in the intelligence and agency systems by the invention of the electric telegraph and new. means of transport; and (3) the increasingly severe measures taken to ensure tne stability of each underwriting member, culminating in the institution of the audit, regarded as the foundation stone of Lloyds pre-sent-day security. In 1871, by Act of Incorporation, what had been a coffee-house became a chartered body. From 1880 the Committee of Lloyds began the provision of signal stations arouuds the coasts of the United Kingdom, and gave support to movements for the better seaworthiness of ships and for better conditions for seamen. During the Avar of 1914-18, which brought its problems, Lloyds rendered valuable service to liie nation by supplying shipping information. It continued to make progress, and in 1928 King George V, opening the present premises in London, described them as “a notable triumpfi of modern classical architecture.” Iu those premises, increased in size iu 1936, insurance business of all kinds running into many millions of pounds is yearly transacted, but since the war began the business is conducted in cellars underground. Mr. G. C. Fetersen, avlio presided, thanked the speaker, and welcomed as visitors Messrs T. Cliippor (Dannevirke) and R. W. Jackson.