Go, Going, Gone Grandyose

As I walked to work in London, my attention was commanded by this tall, metallic, futuristic looking building. The exterior was all stainless steel.  The stairs, duct work and elevators for this high rise  were external.  In my opinion, it was visually amazing.  When I left work that evening it was illuminated with multi-colored lights.  Again, it was my full attention that went to this building.  

There was something familiar but nothing immediately came to mind.  Then at the office several people started to ask what I thought about the building.  Apparently many comment that it appears unfinished.  I loved the building.  This is how I realized that it was not just one of the most interesting buildings I have seen, it was THE Lloyd’s of London building.  You know where celebrities get their body parts insured for millions.  Thank you very much Sir Richard Rodgers for designing this building which was completed in 1986. 

My entire work life has been in reinsurance and insurance.  Everyone in the reinsurance industry knows Lloyd’s of 

London.  For those that have not heard of it, generally if a company has an unusual risk or unusually high limits that they want to cover by an insurance policy this is where they can get insurance.  I am from the States and did not get the full visual of the culture of Lloyd’s of London.  Now that I am in London I was offered a tour, and I jumped at the opportunity. I have been given a different perspective of how intertwined the insurance industry is intertwined with the history of Lloyd’s of London .  

The Tour – A contact of mine in London offered to arrange a tour of Lloyd’s if I was interested.  She knew someone that liked to give tours of the building so she set it up.  This ultra informed man named John is not even an official tour guide.  He works at Lloyd’s as an underwriter.  Aside from not being able to peer over someone’s shoulder during a transaction or go into the restricted areas, he gave an excellent tour.

The Build Up – The tour started in the lobby of our building where pleasantries were exchanged.  Our group was made up five – the guide, my contact  and three expatriates that are part of an insurance rotation.   I was amped!  We were given a general background of Lloyd’s.  How it dates back to the 1700s, its history with coffee houses which is where the business was originally transacted.  The business was face-to-face and much of the business transacted in the same way to this day.  The leading insurance companies are trading at Lloyd’s in these “box” structured work areas.  Which are reminiscent of the booths in the coffee houses.  Lloyd’s is not a insurer it is a market.

The Exterior – In my opinion the exterior is unbelievably eye-catching.  There is a great divide between those who love it and those that feel it appears “unfinished” or  too “inside out”. Our guide described the design as “disemboweled” just to be more

descriptive what are usually the guts of the building are located on the exterior.  This unconventional approach to the construction allows for more space inside the building without those pesky things like elevators, ducts, bathrooms, amongst other things getting in the way.  I also found out later the innards of a building have a shorter lifespan than the building itself (hopefully).  Therefore, by having these major systems located externally, they are easier to repair and replace more efficiently.   One of the goals for this building (completed 1986) was to make into the next century and that has been accomplished.

Security – It’s like Fort Knox!  In order to get into the building, we had to know someone who knew someone.  That someone had to have a valid pass to the building to sign us in for the day.  We had to show some form of identification – work, government and credit cards were event accepted.  The person with the valid pass is vouched for you.  Needless to say,  if you are dodgy they would not let you into the building. We were given passes but our guide was still required to show his to the security officers.

The Atrium – In the atrium there is a salvaged bell from a French bullion ship that was covered in 1799. Apparently there were several unsuccessful attempts to recover the bullion, but the bell was one of the only items that has been recovered to date.  Lloyd’s is steeped in tradition, I learned about the most famous loss for Lloyd’s was the HMS Lutine.

There have been multiple, unsuccessful salvage attempts of the gold and silver cargo that was underwritten by Lloyd’s.  If you are wondering, it seems they paid this claim in two weeks!!  In 1857 the Lutine’s bell was salvaged and in 1858 was relocated located to the main room at Lloyd’s.  It is rare for the bell to be rung due to the bell’s age as it has a crack.  It is rung once for ships that are lost and twice for when they are recovered.  There are several special occasions that warrant this recognition too like certain royal family events.  We are in London. Lloyd’s continues to record marine vessels that sink in a bound book near the bell using a quill and ink.  They also record whether the crew is recovered and ring the bell twice.

Transactions – Space on the underwriting floor is at a premium. A company is located on the ground floor that is prestige for the underwriters. If the Broker does not want to travel to a higher floor it may also mean more business opportunities. The older company’s syndicate number can indicate its tenure with Lloyd’s. A company can pay for a particular syndicate number for marketing or nostalgia. The syndicates have very limited space and are traditionally structured into boxes. There was one company on the main floor that was in an open area and very attractive furniture.  Had to wonder how much that cost the their company.

Women and Lloyd’s – Lloyd’s has a long history and for most of it is was male dominated.  In fact, they only started letting females join the company in the early 1970s. Progress has been swift since then. Roughly 1/3 of the women at the company are underwriters now.  In 2014,  Inga Beales became the first woman CEO for Lloyd’s of London.  Her name is displayed on the very traditional stone plaques.   

I sometimes amaze myself on what I find amazing, this tour was one of those things.  I do hope to return during my assignment in London.  The purpose would be to observe an insurance transaction but we shall see.  If it happens I will update this posting.  Fortunately, I have had the opportunity to not only gaze upon this architectural beauty, but tour the premises.  If you are not able to get to Lloyd’s for a tour yourself the virtual tour is worth a view:  http://www.lloyds.com/flash/Building-Virtual-Tour/index.html