Discover why insurers, brokers, MGAs and InsurTechs worldwide look to London syndicates to cover hard-to-place risk and build custom protection for clients.
If you’re trying to build, place, or scale a specialist insurance proposition today – whether you’re a broker, insurer, MGA or InsurTech – you’re operating in a world where risks are moving faster than traditional products. Cyber is colliding with physical loss. Geopolitics is reshaping supply chains. Climate volatility is pushing clients towards parametric solutions and better resilience planning. In that environment, Lloyd’s of London remains one of the few places where unusual, complex and “hard to place” risks can still find capacity, expertise and a route to market – quickly. And if you want to access that effectively, working with an experienced Lloyd’s broker like Costero Brokers helps you turn the market’s strengths into a practical solution for your client or business.
What’s making specialty placement harder right now?
Even strong insurance businesses are feeling the friction:
- Risk is getting more interconnected. A cyber event can trigger physical damage, business interruption and liability in multiple jurisdictions. Lloyd’s has published and supported research on cyber’s potential to cause real-world physical impacts and systemic aggregation. (Source: Lloyd’s)
- Geopolitical volatility is back in the underwriting room. Political risk, trade disruption, sanctions and conflict-driven loss scenarios are no longer “tail” events. Lloyd’s has highlighted how major geopolitical conflict can create outsized economic and supply chain shocks. (Source: Reuters)
- Clients want certainty and speed. Traditional indemnity claims can be slow for certain perils; parametric triggers and automated processes are gaining traction, especially where rapid liquidity matters. (Source: Lloyd’s)
- Capacity is selective. Syndicates are scrutinising wordings, aggregation, and exposure management – particularly in cyber and nat cat – while still needing growth in emerging sectors.
So the question becomes: where do you go when a risk doesn’t fit the standard template – or when you need to assemble capacity across multiple specialist appetites?
The unique advantages of Lloyd’s of London
Lloyd’s isn’t one insurance company. It’s a regulated marketplace where syndicates (managed by managing agents and backed by capital providers) underwrite risks brought in by accredited brokers. Lloyd’s Corporation provides the market framework, oversight and central services that help protect the market’s reputation and functioning.
And crucially, Lloyd’s sits inside the broader London subscription market approach, where multiple syndicates can take a share of the same risk – ideal when the exposure is big, complex or novel.
Why Lloyd’s is the home of specialty insurance
“Specialty insurance” is really shorthand for risks that require specialist underwriting judgement, bespoke wordings, tailored claims handling, and often shared capacity across multiple markets. Lloyd’s has been built around exactly that model since its 17th-century origins in Edward Lloyd’s coffee house, where marine merchants gathered to share shipping intelligence and transfer risk.
Here are five key reasons why Lloyd’s is still the global home of specialty insurance:
- Concentrated specialist expertise (and fast access to decision-makers)
The Lloyd’s market is home to a large concentration of specialist underwriters and managing agents. It has evolved to encourage innovation and speed – so brokers can get quick decisions on complex placements.
For you, that means less time stuck in generic referral chains – and more time in real underwriting conversations.
- A global licence network that makes cross-border business practical
Lloyd’s enables global reach, with around 80 international insurance licences and the capability to write reinsurance in 200+ territories, with many licences supporting cross-border cover.
That’s a powerful advantage if you’re building multinational programmes, placing complex cross-border exposures, or supporting clients who operate (or trade) internationally.
- The subscription model: shared risk, shared brains, bigger solutions
When a single syndicate doesn’t want (or shouldn’t take) 100% of a risk, the London subscription approach allows multiple insurers to take shares of the risk – bringing complementary expertise and spreading exposure.
This is one of Lloyd’s superpowers for specialty: it’s not just “capacity”, it’s portfolio-level engineering of a placement.
- Financial strength and resilience – tested by real-world demands
Lloyd’s publishes detailed performance metrics, showing it remains a major global hub for commercial and specialty risk. In the first half of 2025, the Lloyd’s market reported gross written premium of GBP £32.5bn (up 6.2% year-on-year), alongside an underwriting result of GBP £1.5bn and a combined ratio of 92.5% – figures that underline both the platform’s scale and the market’s continued profitability. (Source: Lloyd’s)
These strengths can’t completely remove volatility – specialty markets live with it – but it shows a mature market built to operate through complex loss environments.
- A culture and infrastructure geared to innovation
Lloyd’s doesn’t view innovation as just a buzzword – it’s an integral aspect of the Lloyd’s culture. One high-profile example is the Lloyd’s Lab, which supports new products and technology-enabled models, including parametric propositions. (Source: Lloyd’s)
For MGAs and InsurTechs, that matters because Lloyd’s can be both an innovation-friendly capacity source and a route to credibility, governance and scalable distribution.
Specialty insurance at Lloyd’s today
The specialty insurance placed at Lloyd’s today extends into many areas – from the original marine cover to cyber, political risk, parametric and beyond – and Lloyd’s is driving industry thinking in these areas.
- Marine and trade-dependent risks: Lloyd’s earliest roots are in marine and cargo insurance – and the market still plays a major role in specialist marine placement. Lloyd’s also positions itself as a leading marketplace for specialist risk solutions across global territories, which is central to marine and cargo where exposures are inherently international. (Source: Lloyd’s)
- Cyber and cyber-physical: Lloyd’s has published research and frameworks on systemic cyber risk and scenarios that go beyond pure data loss – into operational disruption and physical impact. If your clients are dealing with threats to operational technology (OT) and industrial control systems (ICS), supply chain dependencies, or aggregation concerns, Lloyd’s is one of the places where underwriting depth and wording discipline are actively evolving to meet the latest challenges. (Source: Lloyd’s)
- Political risk: Lloyd’s provides practical market guidance on geopolitical risk classes (e.g., confiscation, inconvertibility, non-repossession), reflecting how these covers are structured and placed in a global, regulated environment. This is increasingly relevant for lenders, exporters, infrastructure investors and multinationals operating in frontier or stressed markets. (Source: Lloyd’s)
- Parametric covers: Lloyd’s has published thinking on parametric insurance and smart contracts as tools to improve efficiency and customer experience – and Lloyd’s Lab alumni activity shows parametric being applied in real embedded propositions (for example, travel disruption). Parametric is not “instead of” indemnity in every case, but it can be a powerful complement – especially where speed of payout is the product. (Source: Lloyd’s)
Think Lloyd’s for deep capacity and custom solutions
If you’re building or placing specialty business, Lloyd’s can help you:
- Access diverse appetites in one marketplace (and structure layered/shared placements efficiently).
- Design bespoke wordings and programme structures for risks that don’t fit standard policy forms.
- Support international distribution and compliance using the market’s multinational capabilities and licence footprint.
- Innovate faster – particularly for MGAs/InsurTechs looking to test, prove and scale new specialty products.
Securing the optimum results from Lloyd’s
Lloyd’s is a powerful insurance resource – but it’s not “plug and play”. Getting the outcome you want depends on how you present the risk, which syndicates you approach, how you shape wordings, and how you assemble capacity to match the client’s commercial reality.
An experienced Lloyd’s-approved intermediary like Costero Brokers helps you do that by:
- Translating complex exposures into a clear underwriting story,
- Accessing the right specialist markets (at Lloyd’s and beyond),
- Structuring placements that work across territories and stakeholders,
- Supporting you through negotiation, binding and claims advocacy.
Next step: Discuss your specialty insurance challenge
If you’re exploring specialty capacity, building a new MGA/InsurTech proposition, or trying to solve a placement problem that’s finding no appetite, speak to Costero Brokers. We’ll help you sanity-check your approach, shape the submission, and find the right Lloyd’s and international market partners. Explore our specialty insurance solutions.
Get in touch with us at Costero Brokers to discuss your requirements and speak with our experts.
