Jeffrey Wade
Lloyd's of London, founded by Edward Lloyd in 1688, has a long and controversial history. The company grew from a small coffee house to a global insurance market, playing a significant role in Britain's slave-trade. Lloyd's obtained a monopoly on maritime insurance related to the slave trade, insuring slave ships and slaves themselves. The company has since apologised for its involvement in the slave trade, acknowledging the enormous suffering and negative impact on Black and ethnically diverse communities. Despite this, descendants of slaves have filed lawsuits against Lloyd's, seeking reparations for the insurer's role in aiding and abetting genocide.
| Characteristics | Values |
|---|---|
| Period of involvement | 17th century to early 19th century |
| Number of enslaved Africans transported by Britain's shipping industry | 3.2 million |
| Percentage of premium income from slavery-related business | 33-40% |
| Percentage of total marine insurance premia from insurance of slave voyages | 5-10% |
| Percentage of total marine insurance premia from ships sailing directly from Britain to the Caribbean and back | 30% |
| Year Britain abolished the slave trade | 1807 |
| Year Britain abolished colonial slavery | 1834 |
| Year slavery was abolished in the United States | 1865 |
| Year slavery was abolished in Brazil | 1888 |
| Year Lloyd's issued an apology for its role in the slave trade | 2020 |
| Amount pledged by Lloyd's for initiatives to support Black and ethnic minority people | £52 million |
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What You'll Learn
Lloyd's of London's role in the slave trade
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. It is not an insurance company per se but a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament. It was founded by Edward Lloyd in a London coffee shop in 1688 to provide cover for merchants whose ships were regularly lost at sea.
Lloyd's played a significant role in the slave trade. It grew to dominate the shipping insurance market, a key element of Europe's global scramble for empire, treasure, and slaves. The slave-economy was a major market for British marine insurance. Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807. It is estimated that slavery-related business accounted for between one-third and 40% of premium income in the second half of the 18th century. The insurance of the slave voyages themselves accounted for an estimated 5-10% of total marine insurance premiums.
Lloyd's has apologised for its role in the slave trade, acknowledging that it was "an appalling and shameful period of English history". The company has committed to funding opportunities for Black and ethnic minority people and investing in more diverse recruitment. In 2017, descendants of Black American slaves sued Lloyd's for billions, alleging that the company financed the trading fleets that uprooted them from their homelands and condemned them to generations of slavery.
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The company's involvement in insuring slave ships
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. It is not an insurance company but a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament. It was founded by Edward Lloyd in a London coffee shop in 1688 to provide cover for merchants whose ships were regularly lost at sea.
Lloyd's grew to dominate the shipping insurance market, a key element of Europe's global scramble for empire, treasure and slaves. It obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807. It was the global centre for insuring the slave trade, with an estimated 3.2 million enslaved African people transported by Britain's shipping industry between 1640 and the early 19th century.
The slave-economy was one of the major markets for British marine insurance. The insurance of slave-ships and, under complex policies, of the captive Africans on board them, was a principal feature of the British financial construct and, by extension, significant to its marine insurers. It is estimated that slavery-related business accounted for between one-third and 40% of premium income in the second half of the 18th century. The insurance of the slave voyages themselves accounted for an estimated 5-10% of total marine insurance premia.
In 2020, Lloyd's issued a statement, apologising for its role in the 18th and 19th-century slave trade and pledged to fund opportunities for Black and ethnic minority people.
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The impact of slavery on Lloyd's business
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. It is not an insurance company per se, but a corporate body governed by the Lloyd's Act 1871 and subsequent Acts of Parliament. It was founded by Edward Lloyd in a London coffee shop in 1688 to provide cover for merchants whose ships were regularly lost at sea.
The slave-economy was one of the major markets for British marine insurance. The slave-economy was clearly a principal feature in the British financial construct and, by extension, significant to its marine insurers. Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the abolition of the slave trade in 1807. It is estimated that slavery-related business overall accounted for between one-third and 40% of premium income in the second half of the 18th century. The insurance of slave voyages themselves accounted for an estimated 5-10% of total marine insurance premia.
In 2020, Lloyd's issued a statement apologising "for the role played by the Lloyd's market in the 18th and 19th-century slave trade – an appalling and shameful period of English history, as well as our own". The institution has committed to funding opportunities for Black and ethnic minority people and investing in more diverse recruitment.
Lloyd's entanglement in slavery did not end with Britain's abolition of slavery in 1834. Cotton grown by enslaved people in the southern United States became a key driver of Britain's industrialisation from the 1790s onwards, and the insurance of the shipping of raw cotton to Britain and of manufactured cotton products to markets worldwide remained an important part of Lloyd's business until the abolition of slavery in the United States in 1865 and in South America in 1888.
In 2017, descendants of Black American slaves sued Lloyd's for billions, alleging that the company financed the trading fleets that uprooted them from their homelands and condemned them to generations of slavery in the New World.
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Lloyd's apology and reparations for its role
Lloyd's of London, founded in 1688, was the global centre for insuring Britain's shipping business. The company formally apologised in 2020 for its role in the transatlantic slave trade, acknowledging that it played a significant role in enabling the trade and perpetuating slavery.
In its statement, Lloyd's expressed deep sorrow for the participation of the Lloyd's market in the 18th and 19th-century slave trade, recognising the enormous suffering caused and the ongoing negative impact on Black and ethnically diverse communities. The company also emphasised its commitment to addressing present-day inequalities faced by these communities.
As part of its response, Lloyd's has taken several steps, including investing the equivalent of $48.8 million and introducing comprehensive initiatives to promote equality. They have also launched the Inclusive Futures programme, which aims to help Black and ethnically diverse individuals advance in their careers. Additionally, Lloyd's is reviewing its artifacts to ensure they are free from racist connotations and is actively supporting charities and organisations that promote opportunities for minority groups.
However, Lloyd's has faced criticism for not offering reparations. Advocates for racial justice argue that true amends require a transfer of wealth to the descendants of the enslaved, rather than diversity initiatives. The company's response has been characterised as "reparations washing," indicating that it falls short of providing meaningful compensation for the wrongs committed during the slave trade era.
Lloyd's, as a corporate body governed by the Lloyd's Act 1871, has a complex history that is intertwined with the slave trade. The company's entanglement with slavery continued even after the abolition of the British slave trade in 1807 and the abolition of British colonial slavery in 1834. Lloyd's insured the shipping of raw cotton produced by enslaved people in the southern United States until the abolition of slavery in the United States in 1865 and in South America, specifically Brazil, in 1888.
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Descendants' lawsuits against Lloyd's
In 2004, descendants of black American slaves sued Lloyd's of London for allegedly financing the trading fleets that transported their ancestors from Africa to the Americas as part of the slave trade. The lawsuit sought billions in compensation for the insurer's support of 'genocide'. The plaintiffs in the case claimed that new DNA testing techniques allowed them to trace their ancestry to specific African tribes and identifiable slave-trafficking episodes.
The lawsuit was not aimed exclusively at Lloyd's, but also at the US government and other commercial entities that profited from slavery. Proving that Lloyd's is accountable for the evils of slavery, especially so long after the fact, will be extraordinarily difficult. It will be necessary to establish in court that descendants of slaves are also 'victims', and that the commercial entities that profited from slavery can be punished even though they were not acting illegally at the time.
Lloyd's is expected to deny any legal responsibility for slavery and fight the case fiercely. They are likely to argue that the claim is outlandish and that the firms and private investors providing insurance cover had no involvement in the insurance market three centuries ago. Previous claims regarding slavery involving Lloyd's have been dismissed with prejudice.
In recent years, a host of British companies have been sued for allegedly collaborating with South Africa's racist apartheid regime. Among the British companies being sued are Barclays Bank and BP. All deny the claims.
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Frequently asked questions
Yes, Lloyd's of London played a role in the transatlantic slave trade.
Lloyd's of London began in the 17th century as a coffee house owned by Edward Lloyd. It became a popular place for merchants, sailors and shipowners to obtain marine insurance. Over time, it grew to dominate the shipping insurance market and played a significant role in the transatlantic slave trade in the 18th and 19th centuries.
Yes, in 2020, Lloyd's issued a statement apologising for their role in the slave trade. They acknowledged that it was an appalling and shameful period of history and pledged to promote diversity and inclusion.
In 2004, descendants of black American slaves sued Lloyd's of London for allegedly financing the trading fleets that transported their ancestors from Africa to America. Lloyd's was expected to deny liability, and it is unclear what the outcome of the case was.
In addition to their apology, Lloyd's has committed to investing in programmes that promote diversity and inclusion, reviewing their artefacts to ensure they are not racist, and funding opportunities for Black and ethnic minority individuals. They have also launched the Inclusive Futures initiative to help Black and ethnically diverse individuals progress in their careers.
