The Corporation is responsible for setting both member and central capital levels to achieve a level of capitalisation that is robust yet also allows members the potential to earn superior returns.
There are three links in the Chain of Security:
- Syndicate level assets
- Members’ funds at Lloyd’s
- Central assets
The funds in the first and second links are held in trust, primarily for the benefit of policyholders whose contracts are underwritten by the relevant member. Members underwrite for their own account and are not liable for other members’ losses. The third link contains mutual assets held by the Corporation which are available, subject to Council approval, to meet any member’s insurance liabilities.