In the year 1688 a coffee house in Tower Street near the Tower of London, was owned by a man called Edward Lloyd. Being so near the River Thames, his customers included ships’ masters, provision merchants, and bankers with a maritime interest. In those days there was no organized market, and people wishing to insure went from house to house and shop to shop asking businessmen to cover their risks to whatever extent they could afford. On the chance of finding several such people at one call, those in search of insurance began to call at Lloyd’s to inquire if anyone was interested. Lloyd began to provide paper and pens for the convenience of customers and gradually the sale of insurance became more important than the sale of coffee.
After Lloyd’s death in 1713 the business continued, eventually becoming a private club whose members owned and controlled the premises and restricted entry to those in shipping and insurance. The Lloyd’s Act of 1871 finally established Lloyd’s as a Corporation, run by a committee elected by the members.
The underwriters, even in the modern premises, have ' boxes ' around the floor which are reminiscent of the traditional coffeehouse settle. These boxes give a certain amount of privacy to underwriters discussing risks with brokers.
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