BROKER WORLD MAGAZINE
W. HAROLD
PETERSEN
RHU, DFP, is founder and chair­
person of Petersen International
Underwriters. He is recognized
as an expert in underwriting
development and policy inno­
vation in the expanding field of
disability financial planning.
Petersen has been awarded
the Harold R. Gordon Memorial
Award (NAHU), the Will G.
Farrell Award (NAIFA Los
Angeles), the Lifetime Achieve­
ment Award (IDIS) and the
Distinguished Service Award
(NAIFA CA).
Petersen can be reached at
Petersen International Under­
writers, 23929 Valencia Boule­
vard, 2nd Floor, Valencia, CA
91355. Telephone: 800-345-8816.
Email: [email protected].
Timeout For A
Significant Event
A
n event significant to everyone who
engages in the business of insurance
directly as a purveyor or indirectly as a consumer recently took place as the hallowed
Lloyd’s of London marked its 325th year as
a leader in the international insurance marketplace. Prior to the corporate formation of
Lloyd’s, many persons and many schemes
were discussed and utilized as a means of
lowering the high risk involved in shipping
goods out into the market for distribution
and consumption.
A manufacturer, as an example, could
lose his life’s work—the production of the
items he had for sale. A textile manufacturer
could lose his entire fortune if the fabric
became damaged, shrunk or faded during
its trip to the distribution destination. Foods
spoiled for lack of refrigeration and animals
for butchering were targets for hungry
and greedy pirates. Other exposures were
dreaded, for it meant loss of cargo and ship.
Weather, war or insincere or larcenous people could pilfer, rob and destroy the ships
and cargo.
Banking had no answers, and even a
strong navy couldn’t be everywhere at
once, so the schemes of sharing risk became
primary to merchants and shippers. Slowly
the idea of hedging the risk became popular.
Underwriters would announce their idea of
taking on portions of the risk in consideration
of a premium to be charged. The underwriters weighed the premium to be charged
against the safety record of the ship’s captain
and owners, age, size and structure. The safer
the risk, the lower the premium.
Reprinted from BROKER WORLD May 2014
Used with permission from Insurance Publications Such plans had problems finding enough
people to make up a list of participants in
time for the sailing. Next was the problem
of collection and safekeeping of the funds
and the distribution after a disaster.
The popular coffee houses were part of
the answer. Many people frequented them.
The consumers became aware of other ship
captains and owners and the safety records
were made known, for it was good for their
shipping business.
Edward Lloyd catered to these people.
He located his coffee house conveniently
on the wharves, offered a cozy, friendly
environment, and furnished ship and
shipping information plus paper and pen
as a convenience. Earning acquaintanceship
with many and showing an understanding
of what needed to be done made Lloyd’s the
hands-down favorite as the headquarters
for the new corporate organization to be
known as Lloyd’s of London.
Another Milestone for a
Grand Organization
Thursday, March 27, 2014, marked the
celebration of the 325th anniversary of the
Lloyd’s of London insurance market—
founded in a 17th century London coffee
house frequented by merchants and ship
captains seeking to spread marine and
cargo risks. It is incredible to think that such
a respected and historical—yet modern—
institution as Lloyd’s began more than 300
years ago.
The western world at that time squabbled
over exploration, expansion and an increase
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in global influence. European nations were
at each other’s throats, declaring war on a
regular basis. King Louis XIV sat on the
French throne, while William and Mary
were crowned monarchs of Britain. Lines
on maps were continuously being drawn
and redrawn, making the safety of trade
and shipping routes all the more important
and precarious. These were the seedlings of
what we now know as the modern insurance industry. The monetary distribution
of risk of loss of life and property—Lloyd’s
was at the beginning.
Throughout its tenure, the Lloyd’s market has been housed in various locations
throughout downtown London, expanding
with the industry. The market is currently
headquartered in a revolutionary contemporary building completed in 1986 at
One Lime Street. It was at this location
that Queen Elizabeth II inaugurated the
Richard Rogers-designed structure and has
since returned to lead in the anniversary
celebrations of the esteemed organization.
The queen and her husband, the Duke of
Edinburgh, arrived at Lloyd’s by limousine
to much fanfare. A regal red carpet covered
the front steps and the streets were lined
with locals and tourists lucky enough to
Reprinted from BROKER WORLD May 2014
Used with permission from Insurance Publications catch a glimpse of the royal couple as they
made their way through a guided tour of
the building and its many historically significant objects. Inside the great underwriting room and atrium, thousands of Lloyd’s
brokers and underwriters looked on as the
queen and Lloyd’s Chairman John Nelson
made rousing presentations to the members
of the market. The pomp and circumstance
was truly fitting an entity of such history
and service. 
Thank you to Joe Russo, editor of the weekly news­
letter “The Communicator,” for allowing us to insert
his excellent article on the queen’s visit to celebrate
the 325th birthday of Lloyd’s. Russo is a history
major (UCLA).
Broker World enthusiastically agreed to let us
take a timeout from Disability Insurance Insights to
bring to readers this delightful story. Next month,
back to basics. www.brokerworldmag.com
Subscriptions $6/yr. 1-800-762-3387