Pre 1874: Before IUMI
It is widely thought that marine is the oldest form of insurance perhaps dating back as early as the Mediterranean trading colonies of around 1200BC. The mid-fourteenth century is when we first saw a formal insurance policy we would probably recognise today. In those days, cover was placed locally and it was only in the late eighteenth century that local insurance associations began to emerge, notably in Hamburg, UK, France, Austria and the USA.
International trade was growing, sail was giving way to steam and there was an increasing demand for greater insurance uniformity.
1874: IUMI is born
The rapid growth in global trade led to the formation of a large number of insurance companies all fighting for market share. Rules and policy conditions were haphazard, rates became severely depressed and many companies simply collapsed.
The remedy was to create an international association for underwriters. Two German insurers took the initiative and, on 8 January 1874 in Berlin, 39 companies came together representing Germany, Austria, Russia and Sweden. The association became the International Union of Marine Insurance (IUMI) and its main purpose was “to work with complete objectivity and with all considerations of competition excluded towards the elimination of all technical deficiencies and the encouragement of legislative improvements.”
To achieve internationality, Berlin was chosen as the meeting venue for the first year only. Membership was confined to those “conducting marine insurance for their own account” ensuring only primary insurers were eligible. Reinsurers were later admitted.
1874-1914: The formative years
IUMI’s formative years were spent collecting and making available background material required for briefing member companies in establishing and clarifying the legal basis of marine insurance. IUMI also involved itself in vessel classification, loss prevention and setting tariffs. Statistics on accidents at sea were published from 1879 onwards.
By 1913, membership had grown to 114 marine insurance companies from 13 countries. IUMI was also busy forming partnerships with other related bodies such as the Comité des Assureurs Maritimes, Comité Maritime International (CMI), Lloyd’s Underwriters Association, Institute of London Underwriters and the Association of Marine Underwriters (later to become the American Institute of Marine Underwriters).
Despite this, by its annual meeting in Baden-Baden in 1913, IUMI was still thought of as a German association due to its location, management and propensity of German members.
1914-1918: Standing still
The outbreak of war in 1914 and the isolation of Germany eliminated any practical possibility of IUMI continuing activities other than an analysis of the fundamentals of marine insurance and continuing with preparing marine insurance statistics as far as was possible.
1920: Restart
International activities were restarted in 1920, again in Baden-Baden. Attendance was sparse with no representation from France, UK, Russia or any country that had been at war with Germany. However, by 1923 and with much perseverance, 219 member companies from 22 countries were now in membership. This was largely due to a brisk wave of new company launches during the war and which had survived afterwards.
Unusually for the time, in 1921, IUMI appointed a female Secretary General, Margareta Frenzl. Two years later, Swede Axel Rinman, the first non-German President was elected. This was to herald the start of IUMI becoming a truly international body. In 1926 a number of companies from the UK market had joined as members and in 1934, IUMI held its annual meeting (and its 60th anniversary celebrations) in London.
By 1939, membership stood at 203 companies from 24 countries.
1939-1946: Standing still – again
All IUMI activities halted for the duration of the war. Only two of the 14 members of the secretariat survived the conflict and the association’s office in Berlin and all its files and documents were destroyed.
1946: A pivotal moment
IUMI was reactivated in 1946 with a meeting in Sweden that was attended by 13 marine insurance associations from 11 countries – Belgium, China, Denmark, Finland, France, Netherlands, Norway, Sweden, Switzerland, UK and USA.
Here it was discussed that instead of an association for insurance companies, IUMI would become a global umbrella organisation for national marine insurance associations with each country being given a seat and vote on the council. This was agreed at a council meeting later the same year in Zurich. It was further agreed that IUMI would be defined as a forum for the discussion of matters of business and for the exchange of information. The annual meeting would be retained and brokers and agents (who had previously been invited to attend) would no longer be invited. IUMI re-located to Zurich.
1947-2012: Growth and expansion
Five additional associations – Austria, Hungary, India, Italy and Portugal – joined in 1947 and by 1949, 34 associations were in membership. Significantly, at the UK annual meeting (in Eastbourne), Germany was readmitted as a member and Japan joined for the first time.
During this time, the board became the Executive Committee and a Nominating Committee was created. A number of technical committees were also established to handle the bulk of the work. In 1952, IUMI recruited its first Secretary General (Peter Alther) since the outbreak of WWII.
IUMI activities focused on establishing relationships with relevant international associations and tackling technical insurance matters especially emerging risks and loss prevention.
By the end of the period, membership had grown to 44 associations.
2013 to date: A new era
For the last ten years, IUMI has been operated by the same Secretary General (Lars Lange) overseen by Presidents from Norway, Germany, UK and now France. The committee structure created in the late 1940s/early 1950s has stood the test of time and - albeit with some modification – continues to operate today. What has changed during this time is IUMI’s influence on the global stage. The association has successfully shifted gear from an organiser of an annual conference to a working body that makes a real and tangible impact on a range of insurance and shipping issues. Under the current leadership, IUMI has grown markedly and is now rightly recognised as the true voice of global marine insurance at national, regional and international levels. In addition, IUMI is represented in Asia through its hub in Hong Kong; it runs a thriving and well-attended educational programme; and it has grown and strengthened its statistics output.
IUMI currently represents 42 national and marine market insurance and reinsurance associations.