International Union Of Marine Insurance News

A few weeks ago I was talking to some professional fire fighters and was regaled with EV fire fighting disasters. They told me that EV caught fire all the time, that EV fires were much more dangerous than gasoline fires, and that fire trucks could not carry enough water to put out an EV fire. When I asked if they had fought any EV fires, they told me their information came from reliable sources and then asked me if I would park my Chevy Bolt in my garage. They focused on my Chevy Bolt, since it is widely regarded as a fire hazard.

During this year’s annual conference held in Edinburgh, the International Union of Marine Insurance (IUMI) took the opportunity to explore and debate the question of diversity, equity, inclusion and belonging (DEIB) with the ambition of taking concrete steps to enhance its own representation and that of the marine insurance community more generally.Patrizia Kern-Ferretti, Chair of IUMI’s Nominating Committee, is driving the initiative and explained: “In 2010, after IUMI having been in existence for more than 135 years, I was only the second woman to chair an IUMI Technical Committee.

Opening this week’s International Union of Marine Insurance (IUMI) annual conference in Edinburgh, Scotland, President Frédéric Denèfle explained the conference theme of “strength and stability in turbulent seas” saying it is essentially “business as usual” for marine underwriters.“As marine underwriters, we are used to managing an array of casualties and losses onboard a variety of vessels and in ports and other shoreside facilities. Dealing with the fall-out from natural catastrophes such as earthquakes and weather events are also workaday issues.

A rise in spot prices for Russian crude oil to above the $60 per barrel cap imposed by western powers has made ship insurers even more nervous of running foul of the rules as they are unable to independently track the value of cargoes, executives said.To curb Moscow's oil revenues following the Ukraine war, the Group of Seven Nations, the European Union and Australia imposed price caps on Russian crude and oil products from December and February, respectively.So long as the prices do not exceed capped levels…

The most important of all international maritime safety conventions is the International Convention for the Safety of Life at Sea (SOLAS). The first version was adopted at a conference in London in 1914. The catalyst for this conference was the sinking of the Titanic on her first voyage in April 1912, which cost the lives of more than 1,500 passengers. This was the beginning of the journey that put in place a regulatory framework to protect those who work and travel by sea.Whilst the sinking of the Titanic was not fire-related…

Oil-laden tankers risk being left languishing at sea if insurers do not urgently get clarity on an unfinished G7 and European Union plan to cap the price of Russian crude, two senior industry executives told Reuters.The Group of Seven (G7), which includes the United States, Britain, Germany and France, agreed in September to enforce a low price on sales of Russian oil.U.S. officials said the move, which is due to start on December 5, was aimed at allowing it to continue to flow…

Commercial insurer Allianz Global Corporate & Specialty released its Safety & Shipping Review, an annual analysis of shipping losses and accidents worldwide. The 2022 report reveals that the maritime sector continues its long-term positive safety trend over the past year with 54 total losses of vessels reported globally, compared with 65 a year earlier. This represents a 57% decline over 10 years (127 in 2012); while during the early 1990s the global fleet was losing 200+ vessels a year.The 2021 loss total is made more impressive by the fact that there are an estimated 130…

When Captain Will Whatley guides a ship through Arctic waters, he is starkly aware of what can go wrong.Double the manpower is needed to navigate. Lookout shifts are kept to just one hour, so sailors don't lose concentration and miss a mass of floating ice. Big icebergs show up on radar, but smaller, truck-sized "bergy bits"—even more dangerous—can be missed, the captain says.The cold can freeze equipment and the earth's magnetic field disrupts compasses. If anything goes wrong…

Fire safety has become a major concern in the container shipping industry, in particular, with vessels of 20,000-TEU and more entering the market. A fire in just one container can have catastrophic implications for the whole of the cargo. The very nature of container shipping means that the cargoes are in general finished goods of high value. Insurer Allianz gives the example of a March 2018 fire onboard the Maersk Honam southeast of Oman. At the time the ship was carrying 7,860 containers, corresponding to 12,416 TEU.

Speaking at the International Union of Marine Insurance (IUMI) annual conference, IUMI Data and Digitalization Forum Chair, Patrizia Kern discussed big data, the use of digital technologies, and how the COVID-19 pandemic has put digitalization on the fast track.“Digitalization is not an option anymore - it is here to stay - and the marine insurance sector needs to keep pace," said Kern. "For some time now, the shipping industry has been seeking cost-effective ways to operate and key logistics players have already begun to partner and digitalize the global marine supply chain.

(This is excerpted from Maritime Reporter & Engineering News' January 2020 "The Path to Zero" column.)Are the world’s ships’ engines ready for IMO compliant very low sulfur fuel? That’s a wide open question as ship owners step to the end of the preparatory gang-plank on January 1, 2020 when 0.5% very low sulfur distillate fuels (VLSF) have to replace residual heavy fuel oil (HFO) containing 3.5% sulfur.You might think that given the length of time to prepare – since 2008 – shipping experts and engineers would have a clearer picture about new fuels and marine engines and operability.

VIKING has secured a contract with V.Ship Hamburg to protect over 40 container ships with the HydroPen System.The alarming rise in the number of container fires has brought calls for urgent action from the International Union of Marine Insurance (IUMI), with stakeholders urged to encourage IMO to strengthen fire protection and review firefighting equipment onboard existing ships. Fighting a fire high up in the stack from the deck is often ineffective, with containers dowsed on the outside while materials inside continue to burn.

This year has already seen an alarming number of container ship fires including Yantian Express, APL Vancouver, Grande America, E.R. Kobe and KMTC Hong Kong.The escalation is of growing concern to IUMI (International Union of Marine Insurance) who used a recent forum to call for an urgent improvement to onboard firefighting systems.At a conference in Arendal, Norway, organised by marine insurer and P&I Club, Gard, and attended by IMO, flag states, shipowners, salvors, class, and insurers…

International Union of Marine Insurance (IUMI) Offshore Energy Committee reported a further reduction in global offshore energy premiums.Global premiums in this sector were reported to be USD 3.4 billion which represented a 3% reduction from 2017. This continued the downward trend: premiums in 2017 were down 5% on the previous year and premiums in 2016 were down 21% on 2015.James McDonald, Chair of the IUMI Offshore Energy Committee said: "The drop in premium income has largely followed the oil price which has dipped by around 20% over the past year. Oil demand is being affected by trade tensions which is impacting economies across the world.

Sean Dalton, Chair of the Cargo Committee of the International Union of Marine Insurance (IUMI) has said at the organization’s annual conference in Toronto, Canada, that there has been a 2.5 percent increase in 2018 global premiums to $16.6 billion but that this increase was largely attributable to growth in global trade and exchange rate fluctuations. He added that the marine cargo market was in a state of “accelerating change” driven by underwriters taking action to address unprofitable results and to improve performance.Dalton stated: “On a global basis…

The increased risk of large, more complex and costly claims has the potential to impact all marine underwriting sectors in 2019, said the International Union of Marine Insurance (IUMI).Although the global fleet continued to grow at around 3% in 2018, the number of total losses (vessels over 500GT) stood at a 20-year low. Only 21 total losses were recorded last year and this is on the back of a general downward trend witnessed since 2010. The reduction was seen across all vessel classes.Serious casualties (excluding total losses) have stabilised over the past three years but are still higher, on average, than in 2014. There is likely to be a spike in Q1 2019 when numbers have been finalised.

Although global premiums for the offshore energy insurance sector dipped by 5% in 2017, signs of recovery are on the horizon."We need to apply some caution as the margins between supply and demand are thin but these small margins can create volatility in the market," pointed out International Union of Marine Insurance (IUMI)'s Offshore Energy Committee Chairman, James McDonald.Oil prices have steadily risen by 40% since last year’s IUMI conference and this is starting to drive activity in the oil and gas sector. Capital expenditure in the sector is forecast to grow by around 6% each year with the lion’s share of the growth being in North America…

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 President.Richard said: “IUMI is the global voice of marine insurance and is the professional body that represents national and international marine insurers. It…

Naval Dome has called on marine insurers to revoke the controversial Clause CL 380 and implement policies that insure against the risk of cyber-attacks on ship systems.Speaking in Cape Town, South Africa, today during the International Union of Marine Insurance’s (IUMI) annual conference, Naval Dome CEO Itai Sela said that with the maritime industry increasingly moving towards connected, cloud-based technologies and autonomous operation, a 15-year-old Clause that excludes damage to computer systems…

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. Total losses involving vessels younger than 15 years were significantly less during the 2013-17 period than the years 2008-2012.

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 impact of Hurricanes Irma and Harvey are unlikely to deliver the same magnitude of loss that resulted from Katrina and Rita in 2005 or Ike in 2008, but whilst Harvey and Irma appear not to have had much impact on the offshore sector the year’s hurricane season still has some distance to run”.

Data from maritime safety specialist Propel shows huge potential to reduce risk of serious accidents. “Human failure tops the agenda of many companies though few know how to address it in a proper way. Collaboration, trust and engagement of all personnel -ship and shore- are vital to reduce major accidents. The whole industry needs to change its focus when it comes to improving maritime safety,” said Benedikte Wentworth, CEO of Propel. According to Propel, despite the continuing downward trend in total vessel losses…

Rising energy claims against a reducing premium base; and the increased cargo accumulation risk onboard vessels and in port continue to challenge marine insurers. Statistics released at the International Union of Marine Insurance (IUMI) Annual Spring meeting in Hamburg last week raise a series of issues that will continue to challenge marine underwriters for the foreseeable future. The frequency of major vessel casualties rose again in 2016 for the second consecutive year. They had enjoyed a year-on-year decline until 2015 when they recorded a sharp upturn which was continued in 2016. Conversely, the trend in total vessel losses (from 2000 onwards) continued its downward trajectory through to 2016 notwithstanding a minor uptick in 2015.