History·20 February 2026·4 min read
Lloyd's of London — insurance was born in a coffeehouse
From Edward Lloyd's coffeehouse, where sailors gathered, the most famous insurance market was born.
In the late 17th century, shipowners and merchants gathered in Edward Lloyd's London coffeehouse. Here arose the idea of sharing the risk of a sea voyage: if a ship sank, several people covered the loss.
What insurance really is
Insurance is a brilliant way to share risk: many pay a little to protect the one struck by misfortune. The same idea underlies today's bank deposit guarantee fund.
