The core of the insurance business is the underwriting function. As a business process, underwriting has remained essentially unchanged since the early 1600’s in London, England. Ship owners, seeking to protect themselves from financial ruin in the event their ships were to be lost at sea, would seek out men of wealth to share in their financial risk. Wealthy men, upon accepting the risk, would write their name under (at the bottom of) the ship’s manifest, hence the name “underwriters.” The underwriters would then share in the profits of the voyage, or reimburse the ship’s captain for his losses if the ship were lost at sea. This practice lead to the founding of Lloyd’s of London, the most recognized name in the insurance business today (Gibb, 1972; Golding & King-Page, 1952).
