International Union of Marine Insurance

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About

The International Union of Marine Insurance is a professional body run by and for its members. It provides an essential forum to discuss and exchange ideas of common interest and to protect and advance members' interests. It also provides through its worldwide communication network- a platform from which views on matters of concern to its members are disseminated to the marine and shipping industry, International Organisations and international media. IUMI has a unique status in the world of marine insurance, whose members are dedicated to expand trade and to enter emerging markets.

The roots of IUMI, in its present form, can be traced to the later part of the 19th century, a time of continuous increase in the volume of international trade and consumption and of constantly improving communications. The transition from sail to steam was already under way, leading to a greater need for marine insurance, especially cargo insurance, both ocean and inland. Until the mid-19th century, most marine insurance was placed in local markets. The developments, in international trade and shipping, however, gave rise to more international transactions. New markets were emerging and there was a demand for uniformity in insurance cover, not least by banks and clients. In the wake of such rapid changes, a great number of marine insurance companies were formed, all endeavouring to secure a share of the market. This led to fierce competition and to the chaotic use of a variety of rules and policy conditions, many of which lacked conformity and substance. The recession that followed in 1870 hit these companies in the midst of a cut-throat fight for business and drove many of them into liquidation. It was then that the need for international cooperation was fully recognised by the traditional markets, mainly in Britain and Continental Europe and it was German Underwriters who took the initiative on 8th January 1874 by forming the Internationaler Transport - Versicherungs - Verband in Berlin. This later became the International Union of Marine Insurance (IUMI). The purpose of this initiative was to create an association «where the members could discuss business matters of common interest with the purpose of agreeing upon principles concerning the management of marine insurance business». At the same time further initiatives were taken to improve the classification of ships and thus influence the work done by Classification Societies; to compile regulations with regard to customs practices and insurance conditions; and to express opinions on legal matters, such as uniform rules for Bills of Lading etc. IUMI also tried to establish advisory rates for certain commodities such as cotton, grain, wood, wool, tobacco etc. However, these efforts failed as any understandings and/or agreements on rates would have been against laws that existed in some member states. By World War I, individual companies from 22 countries had enrolled as members. In 1926 British and French companies also joined. After World War II (1946), individual membership was replaced by membership of National Associations. This made it possible for Lloyd's to join through its Underwriters' Association, and it was then that IUMI started becoming a truly international organisation, tying together the pre-war history of IUMI with the post-war aspirations, needs and demands of the various national markets.