Lloyd's Act 1871

Category: Insurance history · Reviewed by Chrissie Anderson, Client Executive · Last reviewed 2026-06-05

Lloyd’s Act 1871

Category: Insurance history Also known as: Lloyd’s Act of 1871 Enacted: 25 May 1871 Related concepts: Lloyd’s of London, Lloyd’s Act 1982, Lloyd’s Coffee House

Definition

By 1870 the Lloyd’s market had operated for over a century as an unincorporated association of subscribers, governed by deeds of trust and committees. Its growth in size and complexity made informal governance increasingly untenable. The Lloyd’s Act 1871 incorporated the Society under statute with three objects: the carrying on of business of insurance by members of the Society; the protection of members’ interests in their underwriting; and the collection and diffusion of intelligence and information.

Legal / Regulatory basis

The Act was a private Act promoted by the Committee of Lloyd’s and assented to on 25 May 1871. It constituted Lloyd’s as a body corporate, vested the management in a Committee of Lloyd’s elected by the members, and conferred powers to make by-laws governing membership, admission of new members, deposits, and disciplinary procedures. The Act did not authorise Lloyd’s itself to underwrite — underwriting was carried on by individual members on their own account.

Historical significance

The 1871 Act was the first general statute in English law dealing with an insurance market as an institution. It distinguished between the Society (the market infrastructure) and the members (the underwriters), a separation that persists in modern Lloyd’s. It also gave Lloyd’s the power to require deposits from members as security for their underwriting — the origin of the modern Funds at Lloyd’s.

Subsequent developments

The 1871 Act was supplemented by further private Acts in 1888 (extension of objects), 1911 (admission of female annuitants), 1925 (further extensions), and 1951. Following the recommendations of the Cromer Report (1969) and the subsequent Fisher Report (1980), the entire 1871 framework was replaced by the Lloyd’s Act 1982, which constituted the Council of Lloyd’s with broader powers including the power to regulate the conduct of underwriting.

The Lloyd's Acts on legislation.gov.uk

The 1871 Act described on this page was the first of four private Acts; their current status on legislation.gov.uk is set out below.

Source: legislation.gov.uk records for Lloyd’s Act 1871, Lloyds Act 1911, Lloyd’s Act 1951 and Lloyd’s Act 1982. Section-level content is not reproduced here because legislation.gov.uk holds these Acts as scanned PDFs only.

Example

A nineteenth-century underwriting Name admitted to Lloyd’s after 1871 signed the General Undertaking pursuant to the by-laws of the Committee of Lloyd’s, lodged a deposit as required by the Committee, and accepted the disciplinary jurisdiction of the Committee — all statutory powers conferred by the 1871 Act.

See also

• /wiki/lloyds-of-london/
• /wiki/lloyds-act-1982/
• /wiki/lloyds-coffee-house/
• /wiki/reconstruction-and-renewal-plan-lloyds/

References

1. Lloyd’s Act 1871 (34 & 35 Vict. c. cxxi)
2. Lloyd’s Act 1982 — https://www.legislation.gov.uk/ukpga/1982/14
3. Lord Cromer, Report of the Lloyd’s Working Party (Lloyd’s, 1969)
4. Sir Henry Fisher, Report of the Working Party on Self-Regulation at Lloyd’s (Lloyd’s, 1980)
5. D E W Gibb, Lloyd’s of London: A Study in Individualism (Macmillan, 1957)

This entry is part of the Apex Insurance Wiki. Last reviewed by Apex Insurance Brokers on 2026-06-05. Next review: 2026-12-05.

Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.