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DNV: Insurance premiums to rise by up to 30% in 2008

DNV: Insurance premiums to rise by up to 30% in 2008

Singapore: Today's insurance renewal premiums may rise by up to 30% for 2008, pushed up by increasing losses from navigational accident within the shipping industry during 2007 (as confirmed by insurance companies such as Skuld, Norwegian Hull Club and The Swedish Club). A study by the classification society has identified inexperienced crews dealing with increasingly complex on-board equipment as one of the key factors behind marine accidents leading to skyrocketing insurance costs. .

Speaking at a company seminar in Singapore, Helge Kjeøy, regional manager for DNV maritime South East Asia said,  "The main factors explaining the negative developments over the past few years are - that the undersupply of crew worldwide results in reduced experience and that the high commercial pressure results in a high workload. Adding new and more complex equipment does not only help the situation. Avoiding accidents under such situations requires a good safety culture, something which the maritime industry evidently needs to focus more on."

Additionally, the cost of each repair caused by accidents has increased. Overbooking at the yards makes it hard to find a repair slot, which when coupled with the increasing frequency of accidents, has resulted in increased prices. DNV states that estimated costs for collisions, groundings and contacts have doubled and now account for 60% of the most costly accidents.  [21/02/08]