Insurers call for better risk assessment of bigger, more high tech ships

As the people who have to worry about paying out when something goes wrong, the increasing size of vessels concerns marine insurers greatly.

Speaking at the IUMI (International Union of Marine Insurance) 2014 Hong Kong Conference, Chubb managing agent, London Mark Edmonson highlighted the increasing risks that greater scale in the maritime industry is bringing. Pointing to the newbuilding trends, Edmondson said: "The risk profile is changing and is set to increase rapidly in the next 20 years.

"This fact was highlighted in an earlier presentation by Cefor analyst Astrid Seltmann which showed a sharp increase in gross tonnage but a much smaller increase in number of vessels. Set against the backdrop of a small premium base and stagnant rates, this is an important factor to consider for the future, Edmaondson said.

Another risk factor he highlighted was the incresing use of technology and complexity in maritime operations now. Greater regulation as well as specialisation in hull and ship design with the increasing use of electronics and automation for example, can increase risk from malicious cyberattack. "Is there an increase in claims because of this?" he asked. And more pertinently also brought up the question of whether the industry is keeping pace with these developments in technology to adequately assess the risk.

Posted 23 September 2014

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Vincent Wee

Asia Editor, Seatrade Maritime News

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