Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2022
Producer sues Lloyd's over disability policy
Lawsuit filed
In a lawsuit reported in January 2022, Hollywood producer Neil Mandt sued Lloyd's of London over a disability claim. The suit alleged breach of contract and breach of the covenant of good faith and fair dealing. These are allegations stated in the lawsuit; the source does not report a court determination on the claims. The dispute concerns a disability insurance policy.
Source excerpt
Neil Mandt's Los Angeles Superior Court lawsuit alleges breach of contract and breach of the covenant of good faith and fair dealing.
A Hollywood producer is suing Lloyd's of London, alleging the company has breached a contract to pay him for a foot injury he maintains is covered under a long-term disability policy.
2021
Lloyd's of London fined over insurance renewal communications
Fine or penalty
In 2021, the Financial Conduct Authority fined Lloyd's of London's insurance arm £90.7 million. The regulator found that the firm failed to check the accuracy of messages sent to existing home insurance customers about renewal quotes and discounts. The penalty related to communications with customers regarding their renewals. The FCA's action followed its finding that the company had not verified whether the information provided to policyholders was accurate.
The Financial Conduct Authority fined Lloyds’ insurance arm £90.7 million after finding that it failed to check the accuracy of messages to existing home insurance customers about renewal quotes and discounts.
Company response
Apology — Lloyds
‘We’re sorry that we got this wrong. We’ve written and made payment to those customers affected by the discount issue.’
Refund or compensation — Lloyds
Lloyds has since made voluntary payments of around £13.5million to customers who received the letters about a discount that was never applied.
Refund or compensation — LBGI
The FCA said LBGI has voluntarily made payments of approximately £13.5m to customers who received communications that erroneously referred to the application of a discount when none was applied, and that this was taken into account in the assessment of the financial penalty.
Source excerpt
The Financial Conduct Authority said Lloyds’ insurance arm had failed to check the accuracy of its messaging and ordered it to pay a £90.7million fine.
The FCA also found that 500,000 Lloyds customers were told they would receive a discount based on ‘loyalty’ or being a ‘valued customer’ but this never materialised.
Issuing its largest penalty since 2019, the Financial Conduct Authority (FCA) said the renewal quotes claimed the amounts were "competitive" when in fact new customers could get a better price on the same products elsewhere.
2021
Metallica sues Lloyd’s of London over postponed-tour losses
Lawsuit filed
Metallica filed a lawsuit against Lloyd’s of London in Los Angeles Superior Court, alleging that the insurer refused coverage for losses from six South American shows postponed because of COVID-19.
Source excerpt
Metallica is suing Lloyd's of London for allegedly refusing to compensate the band for financial losses suffered when the band was forced to postpone six shows in South America in 2020 because of the coronavirus.
The hard rock group brought the action Monday in Los Angeles Superior Court, alleging breach of contract and seeking unspecified compensatory damages as well as a declaration of the rights and obligations of the parties.
is claiming breach of contract in a lawsuit brought forward this week in Los Angeles Superior Court, saying Lloyd's of London failed to compensate the band after it had to postpone six South American concerts in 2020.
2020
Lloyd's of London apologises for role in Atlantic slave trade
Company response
Lloyd's of London issued an apology for the Lloyd's market's role in the eighteenth- and nineteenth-century Atlantic slave trade. The organisation stated that it had agreed to fund charities and organisations that promote opportunities for Black and ethnic minority groups. The apology addressed the historical involvement of the Lloyd's market in the slave trade during those centuries, and the funding commitment was presented as a related measure supporting Black and ethnic minority groups.
Lloyd’s of London apologised for the Lloyd’s market’s role in the eighteenth- and nineteenth-century Atlantic slave trade and said it had agreed to fund charities and organisations promoting opportunities for Black and ethnic minority groups.
Company response
Apology — Lloyd's of London
The Lloyd's of London insurance market has apologised for its role in the 18th and 19th Century Atlantic slave trade
Remediation — Lloyd's of London
has agreed to fund charities and organisations promoting opportunities for black and ethnic minority groups.
Source excerpt
The Lloyd's of London insurance market has apologised for its "shameful" role in the 18th and 19th century Atlantic slave trade.
Lloyd's said it would invest in programmes to attract black and minority ethnic talent, review its organisation's artefacts to ensure they were not racist and provide financial support to charities and organisations promoting opportunity for black and minority ethnic people.
The Lloyd's of London insurance market has apologised for its role in the 18th and 19th Century Atlantic slave trade and has agreed to fund charities and organisations promoting opportunities for black and ethnic minority groups.
2020
Tracey Bregman sues Lloyd's of London over insurance benefits
Lawsuit filed
Actress Tracey Bregman sued Lloyd's of London, alleging that it underpaid benefits under her homeowners' policy after her Malibu home was destroyed by the Woolsey Fire. The lawsuit alleges that Lloyd's relied on an unqualified and biased consultant and refused to pay beyond the consultant's estimate.
Actress Tracey Bregman sued Lloyd’s of London, alleging that it underpaid benefits under her homeowners’ policy after her Malibu home was destroyed by the Woolsey Fire. The lawsuit alleges that Lloyd’s relied on an unqualified and biased consultant and refused to pay beyond the consultant’s estimate.
Source excerpt
The lawsuit argues that the issues stemmed from the hiring of an “unqualified and biased consultant” by Lloyd’s to prepare an estimate for the rebuilding costs.
Tracey Bregman, known for roles in The Young and the Restless and The Bold and the Beautiful, revealed that she’s suing Lloyd’s for allegedly underpaying insurance policy benefits after her Malibu home was devastated by the Woolsey Fire in November 2018.
2020
Lloyds fined £64m over mortgage customer treatment
Fine or penalty
Lloyds was fined £64 million over historic failings in its treatment of hundreds of thousands of mortgage customers who experienced financial difficulty between 2011 and 2015. The event was reported on 11 June 2020.
Company response
Refund or compensation — Lloyds
Lloyds said that all customers impacted have already been contacted and reimbursed and that customers need to take no action.
Refund or compensation — Lloyds
Lloyds said that all customers affected have already been contacted and reimbursed, and that customers need to take no action.
Remediation — Lloyds
We have since taken significant steps to enhance how we support mortgage customers experiencing financial difficulty, including investing in colleague training and procedures
Source excerpt
The sizeable levy relates to historic failings in the way Lloyds treated some customers who fell behind on mortgage payments between 2011 and 2015.
LLOY.L) has been fined £64m ($81m) for "unfair" treatment of hundreds of thousands of mortgage customers who ran into financial difficulty.
handed down the fine on Thursday.
2020
Lloyd's of London underwriters sue Indianapolis archdiocese over insurance application
Lawsuit filed
Underwriters associated with Lloyd's of London filed a federal lawsuit against the Archdiocese of Indianapolis, alleging that the archdiocese failed to disclose child sex abuse allegations against a priest when it applied for liability insurance. The underwriters asked a judge to rescind the insurance policy and render it void. The dispute concerns the archdiocese's insurance application and the alleged non-disclosure of the abuse allegations.
Underwriters associated with Lloyd’s of London filed a federal lawsuit against the Archdiocese of Indianapolis, alleging that it failed to disclose child sex abuse allegations against a priest when applying for liability insurance. Lloyd’s asked a judge to rescind the insurance policy and render it void.
Source excerpt
Indianapolis Star reported that Lloyd’s has asked a judge to rescind the insurance policy and render it void.
Underwriters associated with Lloyd’s of London have filed a lawsuit against the archdiocese of Indianapolis, alleging that the group failed to disclose that one of its Catholic priests was facing child sex abuse allegations around the time the archdiocese was applying for liability insurance.
1980
Asbestos and long-tail liability crisis
United States asbestos and workers' compensation claims developed into extensive long-tail liabilities. The scale and delayed emergence of the losses contributed to the market's financial crisis and later restructuring.
1980
Late twentieth-century Names and asbestos-liability crisis
Accumulating long-tail claims, including asbestos, pollution and health-related liabilities, caused severe losses for some individual Names and exposed weaknesses in Lloyd's traditional unlimited-liability and oversight arrangements. The crisis led to litigation, restructuring and the Reconstruction and Renewal programme.
1970
Sasse and Den-Har underwriting controversy
Syndicate 762 accepted property and fire risks through a delegated arrangement involving Den-Har Underwriters. The portfolio became associated with fraudulent or suspicious claims and substantial losses, exposing weaknesses in Lloyd's oversight and delegated-authority controls.