I have a confession to make. As I watched the Coronavirus pandemic spread throughout the world and into the United States in late January and February, I was openly derisive about the potential impacts. I was convinced this would just be another flu (don’t we have one of those already), and this would not likely be a significant concern, both from a risk/loss perspective and from a societal impact standpoint. It’s a good thing I learned an important lesson a long time ago: be humble in defeat.
Most people in insurance are familiar with Lloyd’s of London, which started in 1686 in London, England, at Lloyd’s Coffee House, a venue popular with sailors, merchants and ship owners. Lloyd’s originally provided shipping news, but it became an ideal place to obtain marine insurance for ship owners interested in pooling their losses so the impact of losing one ship would be spread across the entire group.