The recent grounding of one of the world’s largest vessels in the Suez Canal has had a devastating impact on maritime trade and supply chains and highlighted the risks involved in the operations of ultra-large vessels.
Shipowners and operators are facing higher cost in responding to and mitigating the effects of the COVID-19 outbreak. Where there is an outbreak of the infection on board, these are likely to be covered by protection and indemnity (P&I) insurance policies.
Technological advancements have opened up vast opportunities for commercial insurers and brokers to anticipate more accurately the third party liability risks that clients pose to their insurers.
Marine insurers are preparing markets for rate increases of up to 7.5% for the 2020/21 policy year. Such a move would hit the shipping industry at a difficult time.
Tim Woodard, Head of Office Lockton Louisiana, and Leanne O’Loughlin, Regional Director (Americas P&I) for Thomas Miller Americas discussed marine risks, market changes and solutions at the November Marine Money conference in New York.
Economic sanctions are increasingly replacing military interventions as a tool to combat opposing political forces in the world, creating a complex and sometimes contradictory regulatory framework for the maritime world.
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.