Page 44 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

MARINE INSURANCE

Greening our world impacts insurers in other
ways too. Vessels are moving an increasing
number of Lithium-Ion (Li-ion) batteries, either
as individual energy storage systems or as pro-
pulsion units for cars and trucks. The transpor-
tation of these new cargoes has made under-
writers get to grips with a new set of associated
risks. Whilst the movement of Li-ion batteries
is not inherently unsafe, there are certain con-
ditions which make them less stable and more
As underwriters, we are no longer volatile. Therefore, it is crucial for insurers to
free to write business anywhere in offer loss prevention advice as well as suitable
the world and vessel and cargo owners products, allowing the ship and cargo owner to
are similarly restricted as to the mitigate their risks.
location in which they may place their There are a range of other ongoing issues that
insurance. underwriters will continue to face in the future.
While claims relating to vessel losses are low,
there is a persistent concern over fires break-
ing out on large containerships and car carriers
resulting in tragic loss of life and large claims.
The IUMI is calling for more onboard fixed
fire-fighting facilities to help combat this. For
cargo insurers, accumulation risk onboard ever
larger vessels or in shore-side facilities remains
a problem. Today, however, the market is much
more aware of stocks and values and is taking
steps to mitigate that particular risk. Moreover,
as fossil fuels give way to renewables, offshore
ness. The shift to low-carbon marine fuels is energy insurers are facing a step change in
already beginning to impact the industry, with the way they operate. Investment in more effi-
underwriters being called on to de-risk tran- cient and less carbon-intensive extraction will
sitionary steps such as the adoption of dual- be required for many years to come but there
fuel LNG engines and propulsion assistance are many new technologies, such as carbon
systems, like wind technology. However, the capture and storage. Underwriters will need to
fundamental change has not taken place, as work in partnership with the energy companies
shipping has yet to decide where best to direct to fully understand some of these never-be-
its efforts. Each potential technology solution fore-seen projects to be able to provide suitable
carries its own set of risks. Ammonia, for exam- insurance solutions.
ple, is extremely toxic and flammable, battery Overall, there is a growing need for more infor-
propulsion can lead to an uncontrollable and mation and analysis, which is changing how
self-igniting condition known as thermal run- underwriters assess risks. Historically, we have
away, biodiesel fuel can be highly corrosive, and used past performance indicators to predict
hydrogen-driven propulsion can be explosive if future events but today we have a range of
not managed correctly. real-time, dynamic data covering engine perfor-
For marine insurers, these clean technologies mance, routing, weather patterns, geopolitical
will present new risks that we must fully under- issues, and more. This form of predictive risk
stand before we can offer adequate insurance management applied intelligently to an insur-
cover. To make any meaningful headway, there er’s risk portfolio will help them manage many
needs to be comprehensive cooperation and of the new challenges on the horizon.
knowledge sharing between owners, classifica- Marine underwriters have been around for hun-
tion societies, flag states, technology providers dreds of years, and the IUMI has been provid-
and others, including insurers. A robust regula- ing support to the maritime industry for the
tory regime is also needed. It should be noted past century and a half. I am confident that our
that work on developing a safety roadmap is adaptability will ensure our survival for many
already underway at the IMO, spearheaded by years to come. We will continue to operate
the International Association of Classification efficiently and effectively, though in new and
Societies (IACS) and co-sponsored by the IUMI. different ways.

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