10. Insurance in Great Britain

The history of insurance in Britain is long one. In early days there was a lot of marine trade between Britain and India and America. So at that time, in the 16^th century, people were insuring their cargo ships.

Then in 1666 there was the Great Fire of London. Before this there were no fire brigades. But after the Great Fire insurance companies employed their own fire brigades to protect the building they insured. The people who sell insurance are called underwrites, because they write their names under the promise to pay. 17^th century customers and underwriters arranged insurance in a coffee house which belonged to man who was called Lloyd. Today Lloyd's is the name of the greatest insurance business in the world.

In the 18^th century, after several changes of home, the underwriters occupied the third building of the Royal Exchange (earlier buildings were destroyed by fire) and organized their business under a Committee of their members. In 1928 they moved to a big new building in Leadenhall Street and as this soon became too small, an extension was built and opened in 1958.

As a matter of fact Lloyd's is not an insurance company or corporation. The members work as individuals, though usually in syndicates. To become a Lloyd's underwriter it is necessary to be approved by the Committee and to pay a very large amount as entrance fee as well as an annual subscription. Lloyd’s underwriters are not allowed limited liability, but in the rare cases of failure (as also in the London Stock Exchange) the insured are not allowed to suffer and Committee pays the outstanding claims.

As the result of the marine insurance business, Lloyd branched out into shipping intelligence, and Lloyd’s List is published every day, giving the movements of ships and information of “casualties”.

Lloyd's Register, published every year, contains information concerning ships themselves: age, nationality, owners, build, tonnage and classification of all ships surveyed by Lloyd's and conforming to its rules. The classification "A-100 Lloyd's" is a guarantee to any prospective purchaser or charterer that the vessel is in good condition and thoroughly “seaworthy”.

But telling about insurance in Britain we can't forget about National Insurance. National Insurance is a system of insurance in the UK, run by the government. Employers and people who work for them have to make regular payments (National Insurance Contribution), and this provides money for people who are old, or ill, or have no work. Every adult has National Insurance Number, and all employers and working people have to take part in the system, which provides security of all citizens in the UK.

Questions:

1. What were people insuring in the 16^th century?

2. When was the Great Fire of London?

3. What happened after the Great Fire of London?

4. Who was an underwriter?

5. Why is the greatest insurance business called Lloyd?

6. What is necessary to become a Lloyd’s underwriter?

7. When was special extension for underwriters built?

8. What is Lloyd’s Register?

9. What is National Insurance?

10. What does National Insurance provide?