Insurance is defined as the sharing of unexpected losses by the transfer of such risks to insurers, who agree to indemnify the insured for such losses, to provide other pecuniary benefits when they occur or to provide services related to the risk. (Rejda, 2011) And Lloyd's of London is the best example of a successful insurance underwriting marketplace serving the world it needs. This seminar will focus on the topic of Lloyd's of London. It will shortly focus on the origins of Lloyd's and its path to becoming a specific integral part of the insurance world. Once the context is covered, we will explain how Lloyd's is structured and organised, whilst elaborating on how market participants operate and interact with each other. Next, different types of risks that are part of Lloyd's business will be explained. By underwriting the risk, Lloyd's takes responsibility for facilitating the entire process and to this end they have developed means to ensure that all claims can be met. Towards the end of the paper I will cover the financial performance of Lloyd's over the last 4 years as I discuss several issues and indicators relating to their financial performance. Only after understanding how and how well Lloyd's operates can we discuss what their importance is, what the main issues they face are and what the future of this specific market is. Data will be collected from financial reports and ratings agency statements for further analysis and research to draw conclusions.2. MAIN PART2.1 Background: 326 years of historyIt all began in the second half of the 17th century when Edward Lloyd opened a coffee house in London to facilitate the ever-growing shipping industry. London has always been...... at the center of the paper......://www.lloyds.com/lloyds/about-us/history/innovation-and-unusual-risks/pioneers-of-travel [Accessed March 30, 2014].Lloyd's, 2014. Capital structure. [Online]Available at: http://www.lloyds.com/lloyds/investor-relations/lloyds-capital-structure[Accessed 30 March 2014].Lloyd's, 2014. The Lloyd's Market. [Online]Available at: http://www.lloyds.com/lloyds/about-us/what-is-lloyds/the-lloyds-market[Accessed 25 March 2014].Lloyd's, 2014. What ensures i Lloyd's. [Online]Available at: http://www.lloyds.com/lloyds/about-us/what-we-do/what-lloyds-insures[Accessed March 27, 2014].The Times 100 Business Case Studies , 2013. How Lloyd's responds to changes in the business environment. [Online]Available at: http://businesscasestudies.co.uk/lloyds-of-london/how-lloyds-responds-to-changes-in-the-business-environment/conclusion.html[Accessed 25 March 2014].