MARINE INSURANCE

Hokitika Guardian, 28 November 1930, Page 6

MARINE INSURANCE

international conference. VICHY, September 22. The sixty-fifth General Conference of the International Marine Insurance Union has opened at Vichy, undeiw writers fi;om about thirty maritime nations being present. In his opening speech, Mr Axel Rinmun, of Gotherburg, the president, spoke of the necessity for obtaining increased insurances rates on both Hulls and cargo.

Not long ago he, with others, had thought that, by making substantial improvements in policy conditions, increased rates might be postponed, but he was no longer of that view. Even before the war underwriting profits were very moderate, policy conditions were less comprehensive, rebates and commissions were less, and taxation was lower than at present, while repairs were cheaper by about 70 per cent. Despite these facts, said the president underwriters had obtained no material increase in rates, while cargo rates in particular were even lower now than in 1913. No other branch of insurance had been exposed to such criticism in the Press as the marine branch, and no national market could be freed from responsibility for this state of affairs. Mr Rinman next dealt with the question of tariffs. The Vichy meeting was to consider a new scheme by which instead of agreements being binding on all when passed by a majority, they would be binding only on those who specifically signified their adherence. It was difficult to understand the hesitation which some showed about this proposal. They wete only asked to bind, themselves to what they would probably do in any event. There was no question of agreements with regard to genuine home business but only with regard to risks of foreign origin. The union was only promoting a new and practical scheme with a view of achieving a solid and recognised position of influence and strength. With regard to cargo business, certain clauses, some of them foolish beyond description, must be done away with. So long as underwriters covered extraneous risks it was clear that neither shipowners, ships’ officers, merchants, stevedoes, or anyone handling cargo, would consider it wqrtli while to exercise proper care, which meant that enormous values were being, lost every year. If three or four of the leading markets would make a firm stand, all the other markets would certainly fall into line.

In conclusion, Mr Rinman pleaded for a bettet understanding between national markets and for an exchange of information with regard to undesirable risks. As it was, the unscrupulous played off one market against another, but an increased exchange of information would make this more difficult.