More than 2,000 of the individual Names investing in the Lloyd's insurance market are quitting next year.

Names, who put up their own cash to underwrite Lloyd's insurance policies, have been leaving the market in droves since the huge losses in the late 1980s.

Latest figures show that while 2,020 are quitting the market altogether, 1,105 Names are taking the less risky investment option of being only liable to pay a limited amount on claims.

Some 6,835 Names will remain on the traditional unlimited liability basis.

Lloyd's said the move did not significantly decrease its capacity to underwrite as it was now gaining more money from corporate, rather than individual, investors.

Corporate investors will next year provide 60% of the capacity, pumping in an extra £2.5bn next year compared to 1997.

Overall, the Lloyd's market will be able to underwrite £10.13bn of potential claims next year, a drop of £20m on 1997.

A spokesman said: "It is not a case of all these Names leaving the market. Many of them are happy with it and continue to act as limited liability members."

Lloyd's said the £20m drop in capacity was a small percentage of the £10bn total.

Lloyd's hit major problems in the 1980s after a number of massive claims, including the Exxon Valdez oil spill and the Piper Alpha oil platform explosion.
 

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