During the second half of the 19th century, the insurance of marine transit risks (capture, seizure and confiscation at sea) appeared on the American market. It was closely linked to the London market, the main insurance market of the time. The coverage was then included in the Lloyd's cargo policy.
By virtue of the Free of Capture & Seizure Clause (FC&S) of 1898, the risk of war [4] was excluded from the marine cargo policy and was the subject of a specific agreement.
In 1914, the American Congress adopted the War Risk Insurance Act, a legislative provision whose objective was to cover ships and people against war risks during the First World War.
A Bureau of War Risk Insurance was then established within the Treasury Department to provide decent coverage and settle claims.
The 1917 Act modified the war risk insurance program, with the latter now offering life insurance to American merchant mariners.