Some Baffling Insurance Policies Issued by Lloyd’s of London

18. One British maritime insurance company refused to underwrite Titanic

Lloyd’s had no shortage of companies eager to sign on to participate in sharing the risk of insuring Titanic. One reason was the growing reputation of the ship’s design and construction representing the pinnacle of the shipbuilding art. While few outside the hyperbolic press claimed the ship was unsinkable (most waited until it actually sank before using that overwrought descriptive to create dramatic headlines) all agreed that it was the best-built and designed commercial vessel in the world. Modern innovations such as radio, which allowed ships to be informed of dangers ahead, also reduced risks encountered by ships at sea.

The British Dominions Marine Insurance Company was a marine insurance policy writer which started in 1904, and participated in several Lloyd’s syndicates. When it came to Titanic, the company declined to join the syndicates eager to insure the vessel. Ship design experts hired by the company reported that the new liner “sat too low in the water”. Although Titanic was designed to sit lower to reduce the risk of being too top-heavy, the experts felt that the design did not “inspire confidence”, particularly in the rough waters of the North Atlantic. British Dominions Marine Insurance became Eagle Star in 1937, and is owned by Zurich Financial Services in 2019.