Shipping Losses Lowest This Century as New Dangers Emerge
The Allianz Global Corporate & Specialty AGCS) Safety & Shipping Review 2019 provides a unique and in-depth look at the emerging risks facing international shipping stakeholders.Large shipping losses are now at their lowest level this century having declined by over 50% year-on-year, according to Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2019. The annual study analyzes reported shipping losses over 100 gross tons (GT). AGCS provides global marine and shipping insurance for all types of marine risk…
Japan Oil Industry Braces for Higher Middle East P&I Costs
The costs of buying crude oil from the Middle East could rise as war insurance for ships travelling in the region will be expanded to include vessels travelling off the United Arab Emirates and Oman, the head of Japan Petroleum Association said on Friday.Japan is the world's fourth-largest oil importer and imports 90% of its crude from the Middle East, government data showed.Asian shippers and refiners had put ships heading to the Middle East on alert and were expecting a possible rise in marine insurance premiums following attacks on Saudi oil tankers and pipeline facilities earlier in May.Ta
New Chairman for Average Adjusters Group
Willum Richards hands over chairmanship of the Association of Average Adjusters on its 150th anniversary to Richard Cornah.The Association of Average Adjusters, set for a memorable 150th anniversary after launching the celebrations at its annual general meeting on May 9, 2019, has chosen a new chairman.Willum Richards announced that on the expiry of his two years in office he was handing over the chairmanship to Richard Cornah, one of the profession’s most authoritative personalities.Liverpool…
London P&I clubs Widen Middle East Threat Zone
London's marine insurance market has extended the list of waters deemed high risk to include Oman, the United Arab Emirates and the Gulf after ship attacks off Fujairah, officials said on Friday, in a move that could push up premiums.The London insurance market's Joint War Committee said in a statement that the additions cover areas of perceived enhanced risk for marine insurers and reflected enhanced regional risk."The situation will be kept under close review," said the Joint War Committee…
Lloyd's of London CEO Sees Success in 2019
Lloyd's of London is making changes that will make it more successful this year, its new chief executive said on Friday.The 300-year-old insurance market publishes the 2018 results in aggregate of the more than 80 syndicates under its roof next week.Large natural catastrophes such as hurricanes, typhoons and wildfires led to losses in the market in 2017, driving Lloyd's last year to tell its syndicates to withdraw from loss-making areas of business.Natural catastrophe losses were also heavy in 2018.John Neal, who joined Lloyd's as CEO in Oct 2018, told the Marine Insurance London conference th
European Marine Insurance Firms Join Forces
Italian worldwide leading broker for marine insurance Cambiaso Risso Group has signed a strategic partnership agreement with French insurance broker Siaci Saint Honore to foster a strong positioning in their markets.The deal will be subject to approval by the competition authorities in some of the 42 countries in which the two companies are active and will come into effect in the second quarter. It will give birth to the world’s top three marine insurance broker in the world,…
Singapore Solidifies Maritime Hub Status
Singapore has introduced two initiatives for the maritime industry - the Singapore War Risks Insurance Conditions (SWRIC) and the development of an inter-operability framework for electronic trade documents for the maritime and trade industries, which will strengthen Singapore’s standing as a leading global maritime hub.According to Dr Lam Pin Min, Senior Minister of State for Transport, the SWRIC is an enhancement to the Singapore War Risks Mutual (SWRM), Singapore’s first national…
BREXIT: North P&I Gets OK for Dublin Brexit Hub
British ship insurer North has received regulatory approval from Ireland's central bank for a new subsidiary in Dublin to ensure continued access to trade in the European Union in case Britain loses single market access, the firm said on Friday.North, which has its headquarters in the northern England city of Newcastle, is the first specialist Protection and Indemnity (P&I) club to announce regulatory approval for Brexit trading arrangements in the EU. It said a team of senior…
Who Wins in Shipping’s Battle for Data?
Weather has to be one of the most important building blocks of any digital operations solution. But, that’s only one of dozens of individual variables. Building a data management solution that navigates the unexpected, and not just the low hanging fruit, is the way to go.One of the most fiercely fought battles in shipping today is the battle for data. On a weekly basis, we see companies of all stripes – ship managers, owners, class societies, equipment manufacturers and even coating suppliers – investing in their own digital solutions and fiercely competing for control over data: the new oil.
Crowley Promotes Harrison
Crowley Maritime appointed Parker Harrison to its leadership team as senior vice president of procurement and risk management, effective Jan. 1, 2019. Harrison, former VP of procurement, will continue to be based at the company’s headquarters in Jacksonville, and will report to Bill Pennella, vice chairman and executive vice president.In her new role Harrison will work across all of Crowley’s business units to strategically align risk management functions while continuing the company’s procurement transformation into a strategic center-led competency.
Ship Operating Costs Rise for Second Successive Year: Drewry
As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs…
Moore Stephens: Ship Operating Costs Decline Again
International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by 1.3% in 2017. This compares with the 1.1% average fall in costs recorded for 2016. For the third successive year, all categories of expenditure in 2017 were down on those for the previous 12-month period, most notably for insurance costs and stores.The findings are set out in OpCost 2018 (www.opcostonline.com), Moore Stephens’ unique ship operating costs benchmarking tool…
IUMI Appoints Richard Turner as President
Richard Turner, European Director of Global Risk Solutions at RSA Insurance Group has been elected President of the International Union of Marine Insurance (IUMI).In accordance with the Articles of Association, IUMI’s Council formally elected Richard at their annual meeting which was held today, the final day of the IUMI annual conference in Cape Town. Richard, who has been closely associated with the global marine insurance market for 35 years, will serve a four-year term as…
Marine Insurance: Protect Your Yacht, Yourself
All my life, I grew up around boats. My dad was a captain for 23 years, and I would travel on his ships throughout the Gulf of Mexico, the Atlantic Ocean and the Great Lakes. My first job out of college was in San Francisco, so naturally I bought a 30-foot sailboat and lived on it on the San Francisco Bay. In more recent years, I have enjoyed yachting with my family on the inland lakes of Virginia. No matter where you have launched your yacht, boating is an exhilarating experience. It can also be dangerous and fraught with risks.
American P&I Club Manager Prepares for Further Growth
Shipowners Claims Bureau, Inc. (SCB), the Manager of the American P&I Club, has recently announced a series of appointments designed to service the Club’s growing membership and help fulfil longer-term goals of continued expansion. The American Club has grown its membership substantially over recent years, tonnage having increased by some 25 percent over the past 24 months, and these appointments are intended to consolidate the Club’s continuing service capabilities in the future.The…
London P&I Club Setting up Cyprus Office over Brexit
British ship insurer London P&I Club is setting up a new subsidiary in Cyprus to ensure continued access to trade in the European Union in case Britain loses single market access, the group told Reuters on Friday.Britain dominates the global marine insurance market and losing access to specialist Protection and Indemnity (P&I) clubs could weaken its multi-billion pound shipping services sector."We have … chosen Cyprus to establish our new post-Brexit EU subsidiary, and we are currently going through the process of setting it up and obtaining the necessary license," London Club said in a statem
EOM Renews Reinsurance Program
Eagle Ocean Marine (EOM), the American Club’s fixed premium P&I and FD&D facility, renewed its reinsurance program for another 12 months from July 1 with the continuing support of its coventurers at Lloyd’s. .Eagle Ocean Agencies, Inc., the Manager of Eagle Ocean Marine, and an affiliate of Shipowners Claims Bureau, Inc., the Manager of the American Club, has recently secured the services of Simon Collins as consultant to the management team. Collins brings a wealth of experience to EOM.
World's First Marine Insurance Blockchain Platform Launched
EY, Guardtime, A.P. Møller-Maersk, Microsoft and insurance industry leaders Willis Towers Watson, XL Catlin, MS Amlin and ACORD announce members of the marine industry are using Insurwave, a blockchain platform to support marine hull insurance. In an increasingly complex and ever evolving risk landscape, global businesses will use the platform to transform how they manage risk across their organization, and how they work with brokers and (re)insurers. Insurwave, built by a joint venture between EY and Guardtime…
Association of Average Adjusters Addresses Claims Lacking Clarity
Insurance market leaders have been urged to apply their policy-reforming zeal to key areas of marine claims lacking clarity – with fishing vessel claims illustrating some of the dilemmas. The call came from Willum Richards, chairman of the Association of Average Adjusters, as he lauded the London market's Joint Hull Committee for its decision to embark on a review of the Institute Time Clauses (Hulls). He wished success to those involved in developing revised hull wordings and…
Concirrus, EY to Drive Change in Marine Insurance Underwriting
Insurtech Concirrus and EY announced a new agreement to accelerate the adoption of behavioral-based underwriting and risk management in marine insurance. Concirrus has created market leading artificial intelligence (AI) powered marine insurance software, and is collaborating with EY, a global leader in specialty insurance consulting, to support the evolution of one of the oldest and most traditional insurance industries. Working together will help marine insurers move from older demographic based underwriting models…
IUMI Cautions about Global Marine Insurance
Against the backdrop of encouraging global economic growth and an improved outlook for the shipping industry, the International Union of Marine Insurance (IUMI) gives expert opinion on the current state of the hull, cargo and offshore energy insurance markets at its Spring Conference in Hamburg. The past three years has seen the frequency of total losses within the global fleet stabilise at 0.13% by number (0.05% by tonnage). This is largely attributable to an improved safety climate, improvements in naval architecture and marine engineering; and more effective regulation.
North P&I Club Sponsors the UK Premiere of ‘The Last Ship’
North P&I Club sponsored the Northern Stage’s production of ‘The Last Ship’, and support Newcastle’s vibrant culture and maritime connections. ‘The Last Ship’ tells a powerful story of community and social history, centring upon the demise of Tyne and Wear’s shipbuilding industry and the impact it had upon the people of the North East. It is Sting’s personal, political, and ardent musical, and has returned to the singer’s home town of Newcastle before embarking on a tour of towns and cities around the UK.
Hill Dickinson Hires Duddington as Partner
International law firm Hill Dickinson has appointed partner Siiri Duddington to join its expanding shipping team. Formerly a partner at Campbell Johnston Clark (CJC), Siiri spent six years at the firm advising on a wide range of dry shipping, trade and insurance litigation, acting principally for owners, charterers, P&I clubs, traders and insurers. Siiri has extensive experience in commercial contracts disputes involving charterparty, bill of lading, MOA, COA, pooling agreements, marine insurance and sale contracts, as well as shipbuilding and rig disputes.
XL Catlin Adds Ocean Marine Insurance Expertise in US
XL Catlin expands its marine insurance team with the addition of Stephen Clark as Vice President, National Hull & Liabilities Practice Leader in Chicago and Alison J. Rizzi as Senior Ocean Marine Underwriter in New York. In his new role with XL Catlin, Clark will address marine businesses’ hull and liability insurance needs. Most recently, he served as vice president of Ocean Marine business at CNA. He joins XL Catlin with more than 25 years of ocean marine underwriting experience.
IUMI: Offshore Energy Insurance Market “Sinking”
At annual IUMI (International Union of Marine Insurance) conference in Tokyo, James McDonald, chairman of IUMI’s Offshore Energy Committee warned that the sector was “sinking”. His warning was based on declining total premium income set alongside upstream energy large losses for 2015-16 of USD 4.8 billion. McDonald explained: “In recent years it would appear that claims have exceeded the global premium base and the last two underwriting years have seen significant losses. The…
“Blockchain” and the World of Marine Insurance
If you’ve been working in the marine insurance industry lately, you will have heard about “blockchain” at some point; it is the electronic, distributed ledger, notoriously known for enabling the use of cryptocurrencies such as Bitcoin and Ether. But the blockchain technology’s utility goes beyond cryptocurrencies, potentially offering creative ways to solve other real-world problems. Within blockchain ledgers, the use of ‘smart’ contracts essentially converts contractual obligations into lines of computer protocols, which facilitate, verify, or enforce its performance.