A century of support: ITIC at 100

Charlotte Kirk, ITIC’s Commercial Director and Mark Brattman, ITIC’s Claims Director, outline the history of ITIC and share the plans for remaining relevant for the next 100.

Looking back to move forward

The origins of ITIC can be traced back to 2nd December 1925, with the formation of The Chartered Shipbrokers Protection Association. Created by senior members of the Institute of Chartered Shipbrokers, the Association was a response to a practical challenge: recovering unpaid commissions. Legal proceedings were expensive so the solution was a mutual defence association, similar to those already established for shipowners. The aim was to support shipbrokers and port agents by sharing legal costs.

By 1937, the Association was formally incorporated as a non-profit under the Companies Act 1929. ITIC continues to operate on a mutual, not-for-profit basis, for the benefit of its members today. In fact, in the spirit of mutuality, ITIC returns excessive funds in the form of a continuity credit each year to members.

It became apparent by the end of the 1930s that shipbrokers also required insurance cover against claims for professional negligence. The minutes of the Association recorded in September 1938 state that:

“A case recently arose in which members had by inadvertence used a wrong clause in and omitted an important clause from a charterparty. They were advised that they were exposed to a claim by the owners for damages for negligence in case anything should happen on the voyage in respect of which the proper clauses would have protected the owners. They were also advised and were, fortunately able to insure the risk, but it cost them the brokerage.”

A separate Class II Indemnity cover was created for this purpose. At the same time the name was changed to The Chartered Shipbrokers Protection & Indemnity Association Limited to reflect this wider role.

Similar claims still happen today, but are for more substantial amounts! Very recently ITIC received a claim where there was an allegation made against the broker for their failure to match the same terms for the new fixture they arranged with the underlying Contract of Affreightment (what is known as “back to back” clauses) Their failure to include the correct clause meant that the new fixture required the charterer to name both the ports AND the rotation within ten days of loading.

However, the underlying fixture only required the ports be named within ten days with the rotation not required to be given until much later. When the underlying charterer changed the rotation after almost 20 days (as they were entitled to do), the new charterer tried to do the same. The new owner declined, stating it was too late to change the rotation. Eventually, the new owner agreed to the change of rotation but only for a substantial additional freight payment. The new charterer paid this and claimed it back from the broker. The cost of doing so was over US$100,000.

Back in the 1920s the cover was a modest £2,000 per claim and £20,000 annually. The annual subscription was just one guinea (£1.05). Nowadays ITIC can offer limits up to US$30m per claim. The largest claim ITIC has paid for a shipbroker’s negligence stands at US$5m.

Growth and global reach

During the 1960s, the need for similar support beyond the UK became clear. Overseas ship agents and brokers faced the same risks and challenges. In response, a parallel association was established: The International Ship Brokers & Agents P&I Club Limited (ISBA Club). The two eventually merged to create the Chartered and International Ship Brokers Protection & Indemnity Association Limited (CISBACLUB), under the management of Tindall Riley.

In 1992, CISBACLUB merged with Transport Intermediaries Mutual Insurance Association Ltd, (TIM), which had been founded by Thomas Miller in 1985 to provide liability insurance across a wider range of transport intermediaries, including the emerging profession of ship management. The result of the merger was a stronger, more broadly encompassing mutual called International Transport Intermediaries Club (ITIC).

Fast forward to the present day, with ITIC supporting over 3,800 members in more than 100 countries, offering specialist professional indemnity insurance and risk management advice across many different professions.

A century of support

In addition to insurance cover, ITIC actively supports its members through comprehensive risk management advice. This includes reviewing contracts in respect of liabilities, advising on standard trading conditions and helping to identify potential liabilities before they arise.

By offering tailored advice and access to practical guidance, ITIC enables members to trade with greater confidence and clarity.

While ITIC’s purpose for the last 100 years, to protect members, remains unchanged, the context in which it operates is evolving rapidly. Digitisation, automation and new ways of working are reshaping the roles of all transport professionals. ITIC ensures it is at the forefront of such developments, to enable support to be offered when needed. However, despite these changes, fundamentally, many of the issues we see regarding negligence haven’t changed in 100 years. Despite the changing technology, the human error remains constant throughout.

The future: evolving with the times

It will certainly be interesting to see how technology, especially AI, shapes the future. Ultimately shipping, in particular, is a people industry and we still believe that where humans are involved in the chain (albeit their role may change in that chain) errors will still occur, and ITIC will be here to help with them. Perhaps one day we will be dealing with a negotiation between two AI intermediaries that goes wrong.

Mistakes still happen. ITIC’s mission remains clear: to be a trusted partner for the next generation of transport professionals, delivering tailored support, practical expertise and the mutual strength that has defined the past century.