cover image Risky Business: An Insider's Account of the Disaster at Lloyd's of London

Risky Business: An Insider's Account of the Disaster at Lloyd's of London

Elizabeth Luessenhop. Simon & Schuster, $25 (352pp) ISBN 978-0-684-19739-5

That a British institution as venerable as Lloyd's of London could face financial ruin was unthinkable. Yet the unthinkable came to pass, and the authors explain how and why in engrossing prose. After describing the rich history of the organization that insured the commerce of the British Empire and, later, the world, and explaining its unique structure, they document the factors that caused a $10 billion-plus financial disaster. External causes included American courts' expanding liability (e.g., in asbestos and oil spill cases). These combined with internal factors such as Lloyd's investors placing blind trust in the company's underwriters and accepting risks in return for the prestige and tax breaks of being ``Names'' (private individuals who pledged their wealth to back Lloyd's policies without having to put up money to get their profit share). This accessible book is for those with an interest in modern English history or the insurance industry. This is Luessenhop's first book; Mayer (Nightmare on Wall Street) is a financial writer. (Dec.)