It may still sound like science fiction to some, but remote controlled or autonomous ships are quickly becoming a reality in the maritime world, shifting the liability exposure of shipowners.
Tightened environmental rules referred to as Sulphur 2020 will be implemented in a few months and could potentially shift the risk exposure of ships, but shipowners need to make sure insurers don’t take advantage of the somewhat opaque transition period and push up rates.
As marine cargo operators use ever bigger vessels to increase efficiency and economies of scale, the consequent change in risk exposure is proving challenging to insurers.
The oil and gas industry presents a complex contractual “landscape” for all participating businesses, with long supply chains and, crucially from an insurance perspective, huge variations in the allocation of risk in relation to matters such as injury, property damage, pollution and financial loss.
The global risk landscape is changing fast driven by two main factors, one man-made and one natural.
Businesses are increasingly finding cyber risk exclusions in their policies at renewal time as carriers are pressed to reduce the volume of policies which don’t clearly define the extent to which they cover cyber risk, commonly referred to as “silent cyber”. For clients this might be a positive development as it forces an opportunity to analyse their true cyber risk and think about the range of cover and support services available that address their specific needs.