As at 31 December 2009, there were 84 syndicates at Lloyd’s. Syndicates operate on an ongoing basis, although they are technically a series of annual ventures. Members have the right, but not the obligation, to participate in syndicates for the following year. In practice, most syndicates are supported by the same capital providers for several years. The stability of the core capital base enables syndicates to function like permanent insurance operations under the Lloyd’s umbrella.
A large proportion of Lloyd’s business is conducted in the Underwriting Room at Lloyd’s, where most of the syndicates have a presence. Here, detailed negotiations take place regarding the risks brokers wish to place at Lloyd’s. Most of these placements involve face-to-face negotiations, but work is underway to enhance the supporting business processes and develop an electronic infrastructure.
Some syndicates specialise in underwriting a certain class of insurance, whereas others write a range of classes. Having direct access to this concentration of underwriting skill gives Lloyd’s its excellent reputation for expertise, innovation and quick decision-making.