1
 At Lloyd's of London, underwriters still scratch out policies 
5001
span

2
using fountain pens and blotting paper.
1
means

3
 Visitors are ushered into the premises by red-frocked doormen 
5003
span

4
known as waiters,
3
elaboration-additional-e

5
 a reminder of the insurance market's origins in a coffeehouse in 17th century London.
5004
Same-Unit

6
 Such trappings suggest a glorious past 
5006
Contrast

7
but give no hint of a troubled present.
5006
Contrast

8
 Lloyd's, once a pillar of the world insurance market, is being shaken to its very foundation.
5008
span

9
 The 301-year-old exchange is battered by enormous claims from a decade-long run of unprecedented disasters, 
5009
span

10
the most recent of which is last week's earthquake in California's Bay Area. 
9
example-e

11
At the same time, Lloyd's is besieged by disgruntled investors 
5011
List

12
and hamstrung by inefficient but time-honored ways 
5012
span

13
of conducting business.
12
elaboration-object-attribute-e

14
 The exchange is gradually being squeezed into narrow, less-profitable segments of the market by less hidebound competitors.
5010
List

15
 Lloyd's is on the ropes, 
5014
span

16
says Peter Nutting, a Lloyd's investor for 17 years 
5015
span

17
who now leads a dissident group 
5016
span

18
threatening to sue exchange underwriters for alleged mismanagement and negligence.
17
elaboration-object-attribute-e

19
 It needs more discipline.
5018
List

20
 It needs to sort itself out. 
5018
List

21
 Most troublesome is the shrinking pool of names, the well-heeled investors 
5020
span

22
(some of them royal)
21
elaboration-general-specific-e

23
 who, as members of about 360 syndicates, underwrite policies.
5020
elaboration-object-attribute-e

24
 Some 1,750 members quit the exchange last year, more than triple the number of resignations in 1987. 
5023
Comparison

25
Names are resigning at an even faster pace this year.
5023
Comparison

26
 Lackluster returns are one reason.
5025
span

27
 The average after-tax return on investment in 1986, the most recent year 
5026
span

28
for which results are available,
27
elaboration-general-specific-e

29
 was 6.5%, 
5027
Same-Unit

30
according to Chatset Ltd., an insurance consulting firm in London.
5027
attribution

31
 In 1985, it was 2.1%.
5029
List

32
 Between 1981 and 1986, the most recent five-year period 
5030
span

33
for which figures are available, 
32
elaboration-general-specific-e

34
Lloyd's reported over #3.6 billion in claims and reserves against future losses 
5225
span

35
($5.7 billion at today's exchange rates), 
34
interpretation-s-e

36
more than double the #1.35 billion posted in the previous five-year period.
5033
Same-Unit

37
 Many of the 31,329 investors 
5035
span

38
who remain
37
elaboration-object-attribute-e

39
 are beginning to question one of the exchange's most basic tenets, the concept of unlimited personal liability.
5036
Same-Unit

40
 Investors may reap huge profits 
5038
span

41
when premiums exceed claims, 
40
circumstance

42
but they are liable to their last pound or dollar in the event of a catastrophe.
5039
Contrast

43
 And catastrophes are getting ever more costly.
5040
span

44
 Lloyd's claims for the 1988 Piper Alpha oil-rig disaster in the North Sea, for instance, may reach $1 billion. 
43
example

45
 During the five-year period 
5042
span

46
ended 1986, 
45
elaboration-object-attribute-e

47
roughly 80% of the names had money tied up in money-losing syndicates,
5043
Same-Unit

48
 according to Chatset consultants.
5043
attribution

49
 The peril of unlimited liability looms large for a number of them now.
5044
cause

50
 I have wished 
5047
attribution

51
I could die 
5047
Cause-Result

52
and be out of it 
5047
Cause-Result

53
-- that's how bad it is, 
5048
evaluation-s

54
Betty Atkins, a secretary from suburban London, says.
5049
attribution

55
 Ms. Atkins, 
5072
span

56
whose Lloyd's membership was a bonus from a former employer in 1981,
55
elaboration-additional-e

57
 belongs to Mr. Nutting's dissident group on the Outhwaite syndicate, 
5054
span

58
which has been hard hit by asbestos reinsurance claims.
57
elaboration-additional-e

59
 Ms. Atkins, 
5056
span

60
who underwrote #20,000, or about $32,000, of insurance coverage on that syndicate, 
59
elaboration-additional-e

61
now faces potential losses of roughly #70,000, or $111,000.
5057
Same-Unit

62
 If Lloyd's wants #70,000 out of me 
63
condition

63
they will have to take everything I've got 
5059
span

64
-- and even then I don't know 
65
attribution-n

65
if it will be enough, 
5061
span

66
she says.
5060
attribution

67
 Unease is widespread among exchange members.
5064
span

68
 I can't think of any reason
5065
span

69
 to join Lloyd's now, 
68
elaboration-object-attribute-e

70
says Keith Whitten, a British businessman and a Lloyd's member since 1979.
5065
attribution

71
 The downside is very considerable, 
5068
List

72
and at the moment the upside is very marginal.
5068
List

73
 If profits don't improve,
5070
condition

74
 Mr. Whitten says 
75
attribution

75
he may quit the exchange.
5070
span

76
 Meanwhile, competition from rivals 
5073
span

77
unencumbered by history 
76
elaboration-object-attribute-e

78
is intensifying.
5074
Same-Unit

79
 Lloyd's is being squeezed out of low-margin but more consistently profitable product lines such as primary property and marine insurance.
5076
span

80
 Over the past decade, competitors have chipped away at the exchange's share of the #2.5 billion marine market in London, 
5077
span

81
where half the world's ships are insured.
80
elaboration-additional-e

82
 Lloyd's 66% stake in that market has shrunk to 50% in that period,
5079
span

83
 according to an official at the Institute of London Underwriters, a Lloyd's competitor.
5080
span

84
 (The official asked not to be named.)
83
elaboration-additional

85
 Much of the business has gone to the institute, an association of more than 100 insurers, 
5082
span

86
including Cigna Corp., Allianz Versicherungs AG of West Germany and Britain's Commercial Union Assurance PLC.
85
example

87
 Lloyd's has endured decades of genteel decline.
5084
span

88
 At the peak of its power and influence a century ago, Lloyd's dominated the insurance world with a 50% stake. 
5085
List

89
It virtually dictated how ships were to be built 
5086
List

90
and it monitored commerce through a unrivaled intelligence network in ports around the globe.
5086
List

91
 Today, Lloyd's share of the world market,
5088
span

92
 excluding life insurance, 
91
elaboration-part-whole-e

93
is about 2%.
5089
Same-Unit

94
 (Its stake is even smaller 
5091
span

95
if life insurance is included.) 
94
condition

96
Bigger rivals, such as Aetna and Allianz,
5093
span

97
 backed by armies of statisticians
5094
span

98
 using computers in hundreds of branches, 
97
elaboration-additional-e

99
operate more efficiently 
5095
Same-Unit

100
and often can offer lower rates, 
5096
List

101
brokers say.
5096
attribution

102
 Though Lloyd's pioneered such now-standard policies as worker's compensation insurance, burglary insurance for homeowners and businesses, and bankers' liability insurance,
103
concession

103
 competitors now underwrite most of that business.
5098
span

104
 Beyond that, many big oil, chemical and airline companies are siphoning off big chunks of the market
5100
span

105
 by insuring themselves through captive offshore companies for industry-specific coverage. 
104
means

106
Even Lloyd's specialty 
5102
span

107
-- unusually risky ventures -- 
106
elaboration-additional-e

108
is being challenged.
5103
Same-Unit

109
 Only 10 years ago, for instance, Lloyd's was the pre-eminent insurer of thoroughbred horses.
110
concession

110
 But since 1981, Kirk Horse Insurance Inc. of Lexington, Ky. has grabbed a 20% stake of the market.
5105
span

111
 Ronald Kirk, president, says 
5110
attribution

112
Lloyd's has suffered 
5108
span

113
because its structure doesn't allow underwriters to deal directly with clients; 
5109
span

114
brokers are required intermediaries.
113
restatement

115
 Thus, 
5226
span

116
he asserts,
115
attribution-e

117
 Lloyd's can't react quickly to competition.
5112
Same-Unit

118
 Lloyd's has lost control of the situation, 
5114
span

119
he says.
118
attribution

120
 They aren't controlling their destiny 
5116
Comparison

121
like they used to. 
5116
Comparison

122
 Murray Lawrence, Lloyd's chairman, agrees 
123
attribution

123
the exchange faces big challenges.
5118
span

124
 This is a watershed time, 
5120
List

125
and we are trying to plot our way ahead,
5120
List

126
 he says.
5120
attribution

127
 We have been a great market 
5123
span

128
for inventing risks 
5124
span

129
which other people then take, copy 
130
enablement

130
and cut rates.
5125
span

131
 Lloyd's,
5227
span

132
 he says,
131
attribution-e

133
 is cut off from the vast body of premium down at the bottom end 
5129
span

134
which acts as a steadying influence against catastrophic losses. 
133
elaboration-additional-e

135
By that, he means low-margin but low-risk products such as certain types of primary property insurance.
5128
interpretation-s

136
 The exchange, 
5228
span

137
he says,
136
attribution-e

138
 must find new products and new markets.
5133
Same-Unit

139
 That won't be an easy task.
5135
span

140
 Tradition is dictator at Lloyd's.
5136
span

141
 Three years ago, the exchange took up residence in a space-age tower of steel and glass 
5137
span

142
-- evocative of the kind of modern architecture 
5138
span

143
that Britain's Prince Charles has denounced. 
142
elaboration-additional-e

144
(Some exchange wags call the building the oil rig.)
5137
elaboration-additional

145
 But along with such treasured artifacts as Lord Nelson's spyglass, Lloyd's also brought its outmoded ways
5141
span

146
 of doing business.
145
elaboration-object-attribute-e

147
 The Lloyd's market actively underwrites insurance just 4 1/2 hours a day,
5143
span

148
 brokers say.
147
attribution

149
 Underwriting doesn't get under way until after morning tea at 10 a.m.
5144
List

150
 A two-hour lunch break follows.
5144
List

151
 Things wind down at about 4:30 p.m., just in time for afternoon tea.
5144
List

152
 Lloyd's vast trading hall houses a warren of well-polished desks.
5145
List

153
 The hall's few computers are used
5146
span

154
 mostly to send messages.
153
purpose

155
 Sandwiched between desks,
5149
elaboration-additional-e

156
 underwriters sit on benches 
5149
span

157
surrounded by stacks of policies.
156
elaboration-additional-e

158
 Brokers 
5151
span

159
clutching thick folders 
158
elaboration-additional-e

160
stand in lines,
5153
span

161
 waiting their turn 
5154
span

162
to speak to the underwriters.
161
elaboration-object-attribute-e

163
 A broker may have to approach as many as 20 underwriters 
5156
span

164
who insure the endeavors on behalf of the syndicates.
163
elaboration-additional-e

165
 It could take six months for a claim to be paid.
5156
elaboration-additional

166
 The system, 
5229
span

167
says Nicholas Samengo-Turner, a Lloyd's broker 
5160
span

168
who left the exchange in 1985,
167
elaboration-additional-e

169
 is so ludicrously unprofessional
5161
Same-Unit

170
 it drives you mad.
5161
consequence-s

171
 Some maintain 
172
attribution

172
underwriters also have been inept.
5164
span

173
 John Wetherell, a Lloyd's underwriter, says 
5167
attribution

174
he and his fellow underwriters underestimated by as much as 50% the premiums 
5167
span

175
they should have charged for property risks from 1980 to 1985.
174
elaboration-object-attribute-e

176
 How unprofessional we must have appeared to the outside world 
5169
span

177
-- how incompetent at risk assessment and evaluation, 
176
elaboration-additional

178
he says.
5169
attribution

179
 Lloyd's officials decline to comment on the matter.
5165
elaboration-additional

180
 More recently, property rates have increased. 
5172
span

181
Many at Lloyd's expect 
182
attribution

182
the San Francisco earthquake will cause the industry to boost rates even further.
5173
span

183
 But it will be years 
184
circumstance

184
before it is clear whether higher rates will offset the payouts for such disasters.
5175
span

185
 The magnitude of the exchange's problems may not become known for some time
5179
result

186
 because of Lloyd's practice 
5179
span

187
of leaving the books open for three years
5180
span

188
 to allow for the settlement of claims.
187
purpose

189
 Lloyd's only recently reported its financial results for 1986.
5182
span

190
 That year, it posted record pretax profit of #650 million, a gain
5183
span

191
 it attributes to higher rates and fewer claims.
190
elaboration-additional-e

192
 But Mr. Lawrence says 
193
attribution

193
reported profit will be down in 1987, 1988 and 1989, 
5185
span

194
though he declines to specify 
195
attribution-n

195
how steep the decline will be.
5187
span

196
 Insurance analysts say 
5191
attribution

197
the exchange's downturn in profitability is likely to be aggravated by more than $600 million in aviation losses 
5190
span

198
(including the 1988 Pan Am airline disaster over Lockerbie, Scotland)
197
example-e

199
 and a still-uncalculated chunk of claims from September's Hurricane Hugo. 
5191
Same-Unit

200
 Lloyd's says 
201
attribution

201
the departures of names isn't likely to hurt its underwriting capacity, currently about #11 billion.
5193
span

202
 Mr. Lawrence says 
203
attribution

203
the drain of funds has been offset by an increase in investments by the remaining names.
5195
span

204
 Meanwhile, the exchange has been trying to lower costs.
5196
span

205
 (It recently cut its work force by 9%, or 213.) 
204
explanation-argumentative

206
 But Lloyd's is hampered in its efforts
5198
span

207
 to overhaul operations
206
elaboration-object-attribute-e

208
 by its reluctance 
5200
span

209
to embrace modern technology.
208
elaboration-object-attribute-e

210
 Mr. Wetherell, the underwriter, reckons 
5203
attribution

211
half of his business could be transacted by computer,
5203
Cause-Result

212
 cutting costs at least 10%.
5203
Cause-Result

213
 Though Lloyd's has talked for years about computerizing underwriting transactions,
214
concession

214
 the effort hasn't gotten very far.
5205
span

215
 Competition among underwriters and brokers makes them loath to centralize price and policy information.
5207
span

216
 Both groups cling to traditional face-to-face dealings, even for routine policies.
215
elaboration-additional

217
 Lloyd's overblown bureaucracy also hampers efforts 
5209
span

218
to update marketing strategies.
217
elaboration-object-attribute-e

219
 Some underwriters have been pressing for years to tap the low-margin business
5211
span

220
 by selling some policies directly to consumers.
219
means

221
 Lloyd's presently sells only auto insurance directly to the public, 
5213
span

222
and such policies are sold only in limited markets such as the U.K. and Canada.
221
elaboration-additional

223
 But such changes must be cleared by four internal committees and dozens of underwriters, brokers and administrators 
224
circumstance

224
before being implemented.
5215
span

225
 The proposal
5217
span

226
 to sell directly to the public 
225
elaboration-object-attribute-e

227
remains mired in bureaucratic quicksand.
5218
Same-Unit

228
 Lloyd's is moving forward on some fronts, though.
5220
span

229
 Mr. Lawrence says 
5222
attribution

230
the exchange is updating some procedures
5222
span

231
 to make speedier payments on claims.
230
purpose

232
 By next year, all underwriters will be linked to a communications network
5224
span

233
 that could reduce paper work on claims.
232
elaboration-object-attribute-e

5001
span
5002
List

5002
multinuc
5006
circumstance

5003
span
5004
Same-Unit

5004
multinuc
5002
List

5005
span
5007
Topic-Drift

5006
multinuc
5005
span

5007
multinuc



5008
span
5019
span

5009
span
5010
List

5010
multinuc
5013
span

5011
multinuc
5010
List

5012
span
5011
List

5013
span
8
summary-n

5014
span
5017
span

5015
span
15
attribution

5016
span
16
elaboration-additional-e

5017
span
5010
explanation-argumentative

5018
multinuc
5014
elaboration-additional

5019
span
5007
Topic-Drift

5020
span
5021
span

5021
span
5022
span

5022
span
5008
evaluation-s

5023
multinuc
5024
Reason

5024
multinuc
5021
explanation-argumentative

5025
span
5034
Cause-Result

5026
span
5027
Same-Unit

5027
multinuc
5028
span

5028
span
5029
List

5029
multinuc
26
explanation-argumentative

5030
span
5031
Same-Unit

5031
multinuc
5029
List

5032
span



5033
multinuc
5031
Same-Unit

5034
multinuc
5024
Reason

5035
span
5036
Same-Unit

5036
multinuc
5037
span

5037
span
5034
Cause-Result

5038
span
5039
Contrast

5039
multinuc
5036
explanation-argumentative

5040
span
5041
span

5041
span
5063
Reason

5042
span
5043
Same-Unit

5043
multinuc
5044
span

5044
span
5045
span

5045
span
5046
span

5046
span
5040
explanation-argumentative

5047
multinuc
5048
span

5048
span
5049
span

5049
span
5050
span

5050
span
5051
span

5051
span
5045
explanation-argumentative

5052
span
5053
Same-Unit

5053
multinuc
5055
List

5054
span
5053
Same-Unit

5055
multinuc
5050
circumstance

5056
span
5057
Same-Unit

5057
multinuc
5058
Problem-Solution

5058
multinuc
5055
List

5059
span
5061
concession

5060
span
5062
span

5061
span
5060
span

5062
span
5058
Problem-Solution

5063
multinuc
5007
Topic-Drift

5064
span
5063
Reason

5065
span
5066
span

5066
span
5067
span

5067
span
67
explanation-argumentative

5068
multinuc
5069
span

5069
span
5066
elaboration-additional

5070
span
5071
span

5071
span
5068
elaboration-additional

5072
span
5052
span

5073
span
5074
Same-Unit

5074
multinuc
5075
span

5075
span
5083
List

5076
span
5074
explanation-argumentative

5077
span
5078
span

5078
span
5081
span

5079
span
5077
elaboration-part-whole

5080
span
82
attribution

5081
span
79
background

5082
span
5078
elaboration-additional

5083
multinuc
5007
Topic-Drift

5084
span
5087
Contrast

5085
multinuc
87
explanation-argumentative

5086
multinuc
5085
List

5087
multinuc
5083
List

5088
span
5089
Same-Unit

5089
multinuc
5090
span

5090
span
5092
Comparison

5091
span
5089
elaboration-additional

5092
multinuc
5087
Contrast

5093
span
5095
Same-Unit

5094
span
96
elaboration-additional-e

5095
multinuc
5096
List

5096
multinuc
5097
span

5097
span
5092
Comparison

5098
span
5099
span

5099
span
5104
concession

5100
span
5098
elaboration-additional

5101
span
5106
span

5102
span
5103
Same-Unit

5103
multinuc
5104
span

5104
span
5101
span

5105
span
5103
example

5106
span
5007
Topic-Drift

5107
span
5117
span

5108
span
5110
Cause-Result

5109
span
112
cause

5110
multinuc
5107
span

5111
span



5112
multinuc
5113
span

5113
span
5110
Cause-Result

5114
span
5115
span

5115
span
5112
elaboration-additional

5116
multinuc
5114
restatement

5117
span
5101
explanation-argumentative

5118
span
5119
span

5119
span
5107
elaboration-additional

5120
multinuc
5121
span

5121
span
5122
span

5122
span
5118
explanation-argumentative

5123
span
5126
span

5124
span
127
elaboration-object-attribute-e

5125
span
128
elaboration-additional-e

5126
span
5121
circumstance

5127
span



5128
multinuc
5130
span

5129
span
5128
Same-Unit

5130
span
5131
span

5131
span
5123
elaboration-additional

5132
span



5133
multinuc
5134
span

5134
span
5130
elaboration-additional

5135
span
5133
comment

5136
span
139
explanation-argumentative

5137
span
5139
span

5138
span
141
elaboration-additional-e

5139
span
5142
concession

5140
span
140
explanation-argumentative

5141
span
5142
span

5142
span
5140
span

5143
span
5144
List

5144
multinuc
5145
List

5145
multinuc
5148
span

5146
span
5145
List

5147
span
5150
List

5148
span
5141
explanation-argumentative

5149
span
5147
span

5150
multinuc
5145
explanation-argumentative

5151
span
5152
Same-Unit

5152
multinuc
5155
span

5153
span
5152
Same-Unit

5154
span
160
purpose

5155
span
5150
List

5156
span
5157
span

5157
span
5158
span

5158
span
5152
elaboration-additional

5159
span



5160
span
166
attribution-e

5161
multinuc
5162
span

5162
span
5163
List

5163
multinuc
5157
explanation-argumentative

5164
span
5165
span

5165
span
5171
span

5166
span
5168
span

5167
span
5166
span

5168
span
5164
elaboration-general-specific

5169
span
5170
span

5170
span
5166
evaluation-s

5171
span
5163
List

5172
span
5007
Topic-Drift

5173
span
5175
concession

5174
span



5175
span
5176
span

5176
span
5177
span

5177
span
180
elaboration-additional

5178
span
5181
span

5179
span
5178
span

5180
span
186
elaboration-object-attribute-e

5181
span
5176
explanation-argumentative

5182
span
5188
concession

5183
span
189
circumstance

5184
span
5192
span

5185
span
5186
Contrast

5186
multinuc
5188
span

5187
span
5186
Contrast

5188
span
5184
span

5189
span
5186
explanation-argumentative

5190
span
5191
Same-Unit

5191
multinuc
5189
span

5192
span
5178
example

5193
span
5194
span

5194
span
5184
elaboration-additional

5195
span
5193
elaboration-additional

5196
span
5208
concession

5197
span
5007
Topic-Drift

5198
span
5199
span

5199
span
5201
span

5200
span
5198
means

5201
span
5208
List

5202
span
5204
span

5203
multinuc
5202
span

5204
span
5199
explanation-argumentative

5205
span
5206
span

5206
span
5202
background

5207
span
5205
explanation-argumentative

5208
multinuc
5197
span

5209
span
5210
span

5210
span
5220
concession

5211
span
5212
span

5212
span
5209
explanation-argumentative

5213
span
5216
concession

5214
span
5211
explanation-argumentative

5215
span
5216
Cause-Result

5216
multinuc
5214
span

5217
span
5218
Same-Unit

5218
multinuc
5216
Cause-Result

5219
span
5208
List

5220
span
5219
span

5221
span
5223
span

5222
span
5221
span

5223
span
228
elaboration-additional

5224
span
5221
example

5225
span
5033
Same-Unit

5226
span
5112
Same-Unit

5227
span
5128
Same-Unit

5228
span
5133
Same-Unit

5229
span
5161
Same-Unit

