The relationship between Mike Falvey, president and CEO of Falvey Insurance Group, and Lloyd’s of London began in 1984 when Mike was working as an underwriter for Donald J. Rojas, Inc. Mike founded Falvey Cargo Underwriting in 1995 and on August 17 of that year, Lloyd’s Syndicate 2 and a panel of other syndicates agreed to give Falvey “the pen” to underwrite cargo policies on their behalf. Fast forward to today and Falvey Cargo is proud to be the largest marine cargo covernote holder at Lloyd’s. There’s a lot more to the story of our partnership, but here’s the short of it:
Who Is Lloyd’s of London?
Growing from its humble beginnings in a coffee house in 1688, Lloyd’s of London is now the world’s leading specialist insurance marketplace. Lloyd’s provides and manages the space where businesses sell their insurance policies, while also overseeing and ensuring those businesses comply within the regulatory requirements of Lloyd’s. The Lloyd’s marketplace is primarily driven by brokers who facilitate the risk-transfer process between policyholders and underwriters. The marketplace includes 50+ top insurance syndicates, 200+ registered Lloyd’s brokers, and a global network of 4,000+ local coverholders. (Source: Lloyd’s of London.)
Called the “Chain of Security,” Lloyd’s capital structure offers both financial security for policyholders and affordability for members. All insurance policies written at Lloyd’s, the market’s security, and global license network are all supported by strength of this capital structure. From celebrity legs and sophisticated project cargo to fuel that runs our homes and cars, Lloyd’s is renowned for insuring both usual and unusual risks, with an emphasis on creating unique solutions for its clients.
What Is Underwriting?
The term “underwriting” was first coined in the late 1600s at that self-same coffee shop in London. Edward Lloyd’s shop was frequented by ship owners, merchants, and captains who listed the details of their trade voyages on a board. Anyone who wanted to insure the risk for a journey would write their names on the board; hence, the term “written under” or “underwriting” emerged to describe both the practice and the practitioners. This coffee shop became Lloyd’s of London, the first modern insurance market in the world.
How Does Falvey Cargo Partner With Lloyd’s?
Falvey Cargo is an approved Lloyd’s coverholder with the market backing of a panel of various syndicates at Lloyd’s of London. From our offices around the world, Falvey underwriters have authority to evaluate cargo submissions; and quote, bind, and issue policies for these risks from our desks within our authority of $50,000,000 for any one conveyance or location, all with the security of Lloyd’s paper. Most importantly, our claims specialists have authority to adjust claims up to $350,000 for any one loss—99.9 percent of Falvey claims fall within that authority, resulting in 70 percent of claims being paid within 60 days of loss reporting.
As a family-owned and operated business, and through our strong partnership with Lloyd’s of London, we understand the value of both experience and innovation. Our underwriters are experienced insurance professionals who specialize in risk assessment and prevention. Plus, at the invitation of Lloyd’s of London and Lloyd’s North America, Falvey participates in worldwide industry educational events and conferences to ensure we’re continually at the forefront of industry knowledge and trends.
Falvey Cargo Underwriting is a specialized provider operating exclusively within the marine cargo market and are known for having the most tailored, flexible policies in the industry. To learn more, read Our Story.