The dark side of
the 300-year-old
insurance market
Step behind the closed doors of Lloyd’s of London and uncover the alleged fraud, negligence and cover-ups that devastated the business.
“There is many a slip ‘twixt the cup and the lip, but in this instance the slip was between ‘broker and underwriter’ . . . threatening the financial integrity of Names and the possible demise of Lloyd’s itself“
As the leading insurance market in the world, Lloyd’s of London was highly respected for its underwriting expertise and prestigious reputation – until it became embroiled in a scandal of catastrophic consequences in the late 1980s. This is the inside story of one of the most merciless insurance battles in British commercial history; a story of suspected fraud, misinformation, negligence and incompetence.
When Syndicate 418 voided a major reinsurance contract held by Marine Syndicate 334, it precipitated devastating losses and personal tragedy for many of 334’s members. Facing potential financial ruin from skyrocketing asbestosis, pollution and DES claims, desperate Names banded together to enter a tumultuous legal fight that spanned a decade.
As their Association fought for
justice, the true extent of corporate
malfeasance and institutional
failings came to light
Against a backdrop of escalating legal disputes, regulatory interventions and financial turmoil, tensions rose and took their toll – families were torn apart, fortunes shattered and lives lost.
Lloyd’s in Crisis offers a sobering account of the inner workings of the insurance industry and the profound human cost of corporate negligence. Meticulously researched and incredibly insightful, this is an unprecedented glimpse into Lloyd’s of London’s most notorious chapter; a pivotal time in the evolution of the Lloyd’s market and the struggle for capital and accountability that still reverberates for its Names today.
About the Author
Edmund A. K. Lester BSc (Agric.) FCA FCMI is a former Name at Lloyd’s who qualified as a chartered accountant with Peats (KPMG) and spent over twenty years in various roles in the insurance industry. During the 1970s he was employed by an international insurance broking group. In the 1980s he was the finance director and joint managing director of an innovative life assurance group. He started his own management consultancy and chartered accountants’ practice. Apart from over four years with Deloitte in Southern Africa, he has lived and worked in the United Kingdom.