October 24, 2023

On April 10, 1912, the British transatlantic steamship "Titanic", nicknamed "unsinkable", set sail from Southampton to New York, on its first and, unfortunately, only voyage. On April 14, "Titanic" collided with an iceberg and sank in the icy waters of the Atlantic Ocean. From the beginning of the tragedy to the moment when the stern of the ship disappeared under water, it took 2 hours and 40 minutes and during this time it was possible to save only 712 people out of more than 2000 passengers.

Twelve insurance companies and more than 60 members of the Lloyd's syndicate were honored to insure the ship. According to Lloyd's bulletin the ship was insured under hull and machinery insurance at the rate of 0.75% for the period of 1 year for the sum of 1 million pounds or $5 million (it is about $164 million in today's prices) with unconditional franchise of 150 thousand pounds. Nevertheless, the amount for which the Titanic was insured was extraordinary and amounted to 20% of the marine insurance market volume for 1912.

Total insurance payments (including payments under life and accident insurance policies) as a result of the disaster amounted to about $12 million, which at 2023 prices compares to at least $392 million, adjusted for inflation.

Not only British insurers but also insurers from other countries around the world were involved in recovering the loss. Allianz and Swiss Re were among the major non-British insurers of the ship that fully recovered their share of the loss. Notably, the reinsurance broker was Willis Faber & Co. which is known today as Willis Towers Watson.