Marine Insurance: The Oldest Kind of Insurance?

Before there was car insurance, home insurance, or life cover, there was marine insurance.

Born out of necessity during the great age of exploration and empire, marine insurance is not only the oldest form of insurance in the UK, but also the foundation upon which the entire modern insurance industry was built.

From handwritten policies in Tudor London to global reinsurance treaties in the 21st century, marine insurance has helped ships set sail, cargoes arrive, and economies thrive. This is the story of how it all started and why it still matters.

From Voyages to Ventures: Where It All Began ⚓

Marine insurance in England can be traced back to the early 1500s, with the earliest known English language policy dated 1523. The concept itself, however, likely arrived earlier brought to London by Italian merchants who had already been insuring voyages in cities like Genoa and Florence.

These early policies were straightforward (but high-stakes). If your ship sank, or pirates struck, or a storm scattered your cargo you’d be paid out by the underwriter, who quite literally signed their name beneath the contract. Hence, the term “underwriter.”

Elizabethan Regulation: The First Insurance Law 👑

By 1601, marine insurance had grown popular enough to catch the attention of Queen Elizabeth I, who passed the first English insurance statute. It set up a specialist body the Court of Assurances to hear disputes and validate policies.

That early Act recognised marine insurance as a “laudable practice” that fuelled commerce and confidence. In other words, it was already clear insurance enabled risk and risk enabled trade.

The Lloyd’s Legacy: Coffee, Commerce & Cover ☕

Fast forward to 1688, when a London coffee shop owned by Edward Lloyd became the hub for shipping news and risk-sharing. Merchants, shipowners and wealthy investors met there, shared information, and began insuring voyages together.

Thus began Lloyd’s of London, now the world’s most iconic insurance marketplace.

At Lloyd’s, if you wanted to insure a ship, you’d find several individuals willing to back part of the risk writing their names and sums below the contract. The format? A standard Lloyd’s SG policy, introduced in 1779. The structure of that document still echoes through policies used today.

Insurer Names from “Back in the Day” 🧾

Before corporates took over, marine insurance in the UK was dominated by individuals and small syndicates. However, two corporate players did emerge:

• Royal Exchange Assurance (est. 1720)
• London Assurance Corporation (est. 1720)

These were granted charters by Parliament—but ironically, Lloyd’s flourished precisely because it wasn’t a company, and so wasn’t caught up in the government’s monopoly protections.

Other notable names in the 18th century included:

• John Julius Angerstein – chairman of Lloyd’s in the late 1700s, often called “the father of modern Lloyd’s”
• Institute of London Underwriters (ILU) – formed in the 1800s by marine insurers to standardise policy wording and support the growing trade

The Laws That Shaped It 📚

Several key Acts helped formalise and mature marine insurance in the UK:

• 1601 – First English statute recognising insurance
• 1745 – Ban on “wager” policies (you had to have a real interest in the risk)
• 1906 – The Marine Insurance Act, which remains a cornerstone of English insurance law to this day. Concepts like insurable interest, utmost good faith, and indemnity were all codified in this single document.

Even now, non-marine insurance policies in the UK often refer back to these marine law principles.

Evolution: From Sail to Steam, from Cargo to Cyber 🚢

As ships evolved from wooden schooners to steel supertankers so did the insurance that protected them.

The 19th and 20th centuries saw:

• Time policies added alongside single voyage cover
• P&I clubs (Protection & Indemnity) formed to cover liabilities like crew injury, pollution, or collisions
• Standardised clauses created (like the Institute Cargo Clauses), many of which are still used globally

And while the risks have changed today’s marine policies cover cyberattacks, war, piracy, and port closures the structure remains remarkably familiar.

Why It Still Matters Today 🌍

Marine insurance might seem niche today, but it’s vital to global trade. Every container ship, oil rig, fishing vessel and ferry relies on coverage to operate.

In fact, over 90% of world trade moves by sea. Without insurance, that wouldn’t be possible.

Modern marine insurers now cover:

• Cargo theft or damage
• Hull and machinery breakdown
• Port disruption and sanctions risks
• Crew injury and environmental liabilities
• Political and war-related loss

And the UK remains a leader, with London still considered a global hub for marine risk anchored by the expertise at Lloyd’s and a legal framework unmatched in history.

RiskWire's Take: Why This History Still Sails 🧠

Marine insurance is more than just a relic, it’s a living legacy. It pioneered the concepts we now take for granted in all insurance contracts: underwriting, risk pooling, fair disclosure, policy wording, and claims handling.

It taught the industry how to manage volatility, capital, and catastrophe and it continues to lead in adapting to modern risks, from cyber warfare to climate disruption.

It may have started with parchment and quills, but marine insurance helped launch the modern financial world and it's still navigating the future of global risk.

Written by Luke ⛵
The Pulse of UK Insurance