Marine insurances and their importance for world trade

In today's world most of the commodities that consist the subject of the trade on globe is being carried and delivered via sea transportation. However, especially due to the specific nature of the sea and the natural perils, merchants that get involved with the maritime trade face very big risks that may led them to bankruptcy. Therefore, in order for this trade to continue effective and be sustainable, interests of both the commodities that are being carried and the interest of the carriers need security against the risks that they may face during sea transportation and marine insurances provide such security. On this paper emergence, history, current applications and the indemnities that are provided by marine insurances are discussed in order to have a better scope of their importance. By reviewing whom and against which risks the indemnities are provided, importance of marine insurances on world trade has is explained.