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It is truly amazing to me that after more than three centuries in business, virtually no one in this country outside of the insurance industry understands what Lloyd's of London really is, how it works, and what a critical role it plays in our economy. What can be done to change that? Must Lloyd's go so far as to launch a new reality TV show to educate the American public?

Lloyd's is trying to broaden awareness, but it's tough going because most “civilians”–those not part of the insurance industry–still think of Lloyd's as some exotic place where glamorous but essentially silly risks are placed, like some movie star's body parts.

Indeed, Chairman Peter Levene mentioned early on during an interview aired last night on the PBS program hosted by Charlie Rose, that Lloyd's recently covered “Ugly Betty's smile,” referring to actress America Ferrera, star of the hit TV show.

That's why Lord Levene was with Charlie Rose in the first place–to publicize the fact that Lloyd's offers more than just coverage for a pretty face.

When I visited with Lloyd's in London last October, I was asked for advice on how Lloyd's might better communciate its place and value in the U.S. economy beyond the insurance press and general business media.

I immediatley thought of Charlie Rose, given the fact a Lloyd's official would get at least a half-hour, commercial-free, to make their case before a relatively small but fairly sophisticated American audience.

Sure enough, Lloyd's followed up on my suggestion and booked Lord Levene for an appearance while the chairman was in town for a gala dinner in New York City this week that drew a veritable “Who's Who” in the insurance industry. (For my report on the big news from that dinner, see my June 26 blog entry.)

The Chalie Rose appearance was a good start. (If you would like to view the full interview online, click here.) Still, it's clear Lloyd's has a long way to go.

Charlie asked Lord Levene right off what Lloyd's is, exactly. The chairman tried to put the market's impact on the U.S. economy into context statistically, but then Charlie quickly moved on to more generic economic topics. Insurance, as usual, became an afterthought.

So, what can Lloyd's do to get its message out to a blissfully ignorant American public?

Perhaps Lloyd's must adopt the only approach the dumbed-down American viewing public appears to pay attention to these days, by producing a new reality TV program!

Put together competing syndicates staffed by totally clueless Americans. Teach them (and through them, the tens of millions of viewers the program will draw) exactly how Lloyd's works. Then let them loose and pit them against one another in a contest to see who can underwrite risks most profitably!

If you need a British-American pop icon to bridge the cultural gap, have Simon Cowell of “American Idol” infamy host it!

This would be a bit of a throwback to the days when Lloyd's was financed primarily by individual investors (those “Names” who are now an endangered species), rather than today's dominance by corporate capital.

Anyone who suspects such a program could not possibly be entertaining has obviously never sat “in the box” with a real-life underwriter at Lloyd's, as I had the pleasure of doing over a decade ago. I sat by the underwriter's side as he casually signed on for pieces of exposures totalling tens of millions–ranging from earthquake risks facing office complexes in Tokyo, to private school buildings concerned about civil unrest in South Africa.

The gentleman with the underwriting stamp took great glee in teasing the brokers who stopped by to shop their risks that day, introducing me as his shrink, on hand to observe first hand why his blood pressure was so high, his heartburn so chronic, and his personality so manic. Too bad there were no TV cameras there to record it!

All kidding aside, it's terrible that Lloyd's is not only so misunderstood in this country (quick, how many “civilians” would realize that Lloyd's is a market, not an insurance company?), but that it is so unappreciated.

At the dinner on Wednesday, New York Gov. David Paterson noted in his speech that New York City would have been up the creek after Sept. 11, had Lloyd's not coughed up over $11 billion in insurance claims. He also pointed out that Lloyd's is covering many of the reconstruction projects on the World Trade Center site today.

But who else outside of the governor and the insured parties knows about this?

What do you folks think?

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