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Monday, October 23, 2017

Insurance The

Insights: H. Elder Brown, Jr.

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Chairman of the Board of Directors, Fidelis Group Holdings LLC and Continental Underwriters, Ltd.   For those in the marine insurance and underwriting communities, H. Elder Brown, Jr. needs no introduction. That’s because over the course of the past 27 years, Brown has taken Continental Underwriters Ltd. (CUL) from a small family business to one of the largest brown water marine underwriters in the United States. More recently, Brown returned CUL to private ownership by purchasing CUL back from Houston Casualty Company in 2009.  Today, CUL is an industry leader in part due to the company’s excellent underwriting and claims handling. A 1974 graduate of Loyola University, Brown has steadily risen through the ranks of marine insurance, serving along the way in the Claims Department, as Assistant Underwriter, Senior Underwriter and eventually earning his current position as Chairman of the board of directors. Starting out as an Offshore Crew boat captain, Brown at one time operated and managed oilfield crew boats. As such, his knowledge of this unique market niche extends far beyond simple dollars and cents. This month, he weighs in for MarineNews readers on a host issues affecting marine insurance and those who depend on those services. How do you view the marine insurance marketplace at the current time? How about in one year? Five?

U.S. Extends Marine War Risk Insurance

Secretary of Transportation Norman Y. Mineta has approved an extension of the authority to provide war risk insurance under Section 1202 of the 1936 Merchant Marine Act (Act). Unlike Section 1205 insurance, which is provided to the Department of Defense (DOD) on vessels chartered to them at no premium and with a full DOD indemnity, Section 1202 insurance is underwritten by DOT in return for a premium from shipowners. This insurance or reinsurance of vessels is available for vessels (including

Walker Joins Moore Stephens

Moore Stephens has appointed Lloyd's insurance market expert Tim Walker a consultant to its insurance and business intelligence team. Walker has extensive experience of international - and particularly Lloyd's - underwriting markets. He was a director of Miller Underwriting Agencies for ten years until starting his own full-time Lloyd's consultancy in 1993, in which capacity he acts as manager to Charles Taylor & Co, managers of The Stop Loss Mutual Insurance Association Ltd.

Norwegian Courts Reject Insurance Forum

Wikborg Rein, a Norwegian law firm, said Norway's Supreme Court has closed a door to claimants attempting to act against foreign shipowners insuring themselves in Norway. Anders Faerden, a partner in Wikborg Rein's Oslo office, said, "A Mexican insurance company has unsuccessfully brought a claim in Norway against a major Russian shipowner. The claimant tried to sue the Russian company in Norway because it had its P&I cover with Oslo-based Skuld.

Logistics Insurance Provider Opens New Corporate HQ

Tactical Insurance Group has opened a new corporate office to facilitate the expansion of the company into its targeted industry sector –  Logistics Insurance. One of the South Central region's leading insurance brokers, Tactical Insurance Group, has moved into a newly expanded corporate office facility in Dallas as part of its strategy to grow its Logistics Insurance practice throughout Texas and surrounding states.

XL Offers KRE Cover to Yacht Owners

Denise Balan

  To help yacht owners navigate increasingly risky waters, XL Group is adding a Kidnap, Ransom & Extortion (KRE) Crisis endorsement to ShipShape, and ShipShape Plus, its recreational marine insurance coverages. "Crisis events like kidnapping, disappearance and hijack are increasingly real threats, especially on open seas," explained Denise Balan, Country Manager of XL's US Crisis Management business which developed the KRE endorsement

Moore Stephens Says Insurance Industry Must Embrace Business Intelligence

Regulatory developments mean that failure to make proper use of business intelligence systems and actuarial consultancy to assess risk could lead not only to significant financial losses but also to disciplinary penalties for insurance underwriters and brokers, according to leading accountant and consultant Moore Stephens. John Harbor, head of the Moore Stephens Insurance Industry Group, says, "Professional risk analysis and modern data management techniques are

Barbican Acquires Marine Insurance Broker

Barbican Group Holdings Limited (Barbican) announced that it has acquired Seacurus Ltd (Seacurus), a U.K.-based specialist marine insurance broker. Established in 2004, Seacurus focuses specifically on revenue protection in the marine insurance market. A provider of marine kidnap and ransom insurance, the company offers a range of products designed to help companies in the shipping industry manage a wide variety of operating and financial risks.

IMG Enhance Marine Group Medical Insurance Program

International Medical Group® (IMG) a leader in designing, distributing and administering global medical insurance benefits, has announced its enhanced flagship marine group medical insurance program. According to IMG, the enhancements enable ship owners to provide their crew comprehensive coverage for eligible medical expenses, which is increasingly important with the enactment of the Maritime Labour Convention (MLC, 2006).

CMA CGM: Book your Cargo Insurance online

Image: CMA CGM

 With a one stop shop offer to facilitate your shipping experience, CMA CGM, in partnership with one of the largest marine insurance companies in the world, has developed a Unique Cargo Insurance Program to cover the unexpected and unforeseeable events that may lead to loss or damage of your cargo. CMA CGM press release says that, since June, 20th 2016, this offer is also available in the CMA CGM eBusiness Platform

Shipping Operating Costs Declining -Report

© yaniv / Adobe Stock

Total annual operating costs in the shipping industry fell by an average of 1.1 percent in 2016, says international accountant and shipping consultant Moore Stephens. This compares with the 2.4 percent average fall in costs recorded for 2015. For the second successive year, all categories of expenditure were down on those for the previous 12-month period, most notably for insurance costs and stores.    The findings are set out inMoore Stephens’ ship operating costs

Inland Marine Insurance: Assuring Property and Goods Move Forward

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Though water covers more than 70 percent of the Earth’s surface, businesses engaged in marine shipping operations and logistics, and other businesses that manufacture and ship product still have a lot of ground to cover getting their various goods to their final destinations. The ocean marine insurance market, the oldest insurance market in the world, was initially developed to protect these goods while crossing the ocean’s open waters

The Complicated Business of Marine Construction Worker Claims

© Goodluz / Adobe Stock

The right insurance policy could help you stay above water after a workplace incident.   The day-to-day job of marine construction workers has many potential hazards. While restoring shorelines, dredging harbors, repairing bridges and building docks, they often operate heavy machinery. Manning cranes, forklifts and excavators day or night, it is not uncommon to work in sweltering heat, freezing cold temperatures and an array of other challenging weather conditions

Legal Limbo: Risk Management in a Modern Marine Economy

© Currahee Shutter / Adobe Stock

Technology helps maritime companies do more with less. But today, technological advances are outstripping legal developments. As a result, many marine-based businesses operate in a legal limbo with many lawyers and insurance professionals confused about what laws will apply to what claims. While sometimes philosophical, the problem of what law will apply becomes stark and very real when a worker is injured.    Changing Seascapes

XL Catlin Boosts Inland Marine Insurance Capabilities

Russell Crooks (Photo: XL Catlin)

XL Catlin continues to expand its inland marine field operations with the addition of Russell Crooks as Vice President, National Inland Marine Director, based in San Francisco and Maria Klein as senior underwriter in Baltimore. In his new role with XL Catlin, Crooks will liaise with brokers and clients throughout the western US to address their diverse inland marine insurance needs including motor truck cargo, builder’s risk, contractor’s equipment

Cosco Firms Sign Insurance​ Agreement

Pic: Cosco Shipping Energy Transportation Co Ltd

 Cosco Shipping Energy Transportation has entered into insurance services framework agreement with Cosco Shipping Insurance​ pursuant to which the latter will provide vessel-related insurance services to the Group.   Cosco Shipping  Insurance is a wholly-owned subsidiary of Cosco Shipping , the Company’s indirect controlling shareholder. Accordingly, Cosco Shipping Insurance is a connected person of the Company

Global Shipping Feels Fallout from Maersk Cyber Attack

Photo: A.P. Moller - Maersk

Global shipping is still feeling the effects of a cyber attack that hit A.P. Moller-Maersk two days ago, showing the scale of the damage a computer virus can unleash on the technology dependent and inter-connected industry.   About 90 percent of world trade is transported by sea, with ships and ports acting as the arteries of the global economy. Ports increasingly rely on communications systems to keep operations running smoothly

AHHI Insures 1,900 Vessels in First Year

Photo: American Hellenic Hull Insurance

 Cyprus-based American Hellenic Hull Insurance (AHHI) surpassed key targets during its first year of operation: 1,900 insured vessels, written premium income exceeded $10 million and covered 35 million GT on 100% basis, said a press statement.   During its latest Board meeting in June 2017, American Hellenic Hull Insurance Company appointed two new Directors, Angelos Kostakos of Oceanstar Management Inc. and

Japan Bank Finances Danish Shipper

Photo: Japan Bank for International Cooperation (JBIC)

 The Japan Bank for International Cooperation (JBIC) will provide a total of $28.3 million in syndicated loans with French bank BNP Paribas to help a major Danish shipping operator’s unit buy cargo vessels to be built by leading Japanese shipbuilder Imabari Shipbuilding, Jiji Press  reported.   The state-owned JBIC aims to revive the domestic regional economies relying on the shipbuilding industry by giving financial support for vessel exports at a time when the industry

MOL Joins Blockchain Consortium

MOL Logistics (Hong Kong). Photo: Mitsui O.S.K. Lines

 Mitsui O.S.K. Lines (MOL) has announced its determination to participate in the "Consortium to develop trade data sharing platform using blockchain technology," in which NTT DATA Corporation serves as the administrative office.    The consortium is comprised of 14 trade-related companies such as banking, insurance, total logistics providers and export/import companies.   Current trading practices rely heavily on bills of lading and other documents

Exmar sells Belgibo to JLT

Photo: BELGIBO NV

 Ship management company EXMAR has reached an agreement to sell insurance broker BELGIBO NV to Jardine Lloyd Thomson Group plc (JLT), one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services.   Based in Antwerp, Belgibo is a leading Belgian specialist broker with a strong client-first advisory approach and commercial strengths in marine, credit and political risks, aviation, cargo, employee benefits

Wreck Removal Treaty Comes into Force in Singapore

Photo: Gard

 Skuld Singapore  has reminded all members that Singapore has ratified the Wreck Removal Convention (WRC) which entered into force in Singapore on 8 September 2017.   "As members will be aware, the WRC requires among other matters owners of ships over 300 GT to have in place insurance to cover the costs of wreck removal. Skuld, like all the clubs within the International Group, has appropriate wreck removal cover available to their members

“Blockchain” and the World of Marine Insurance

© the_lightwriter / Adobe Stock

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

How to Legally Remove a Hazardous Wreck

Photo:  International Maritime Organization (IMO)

 What is the legal basis for removing a hazardous wreck at sea? Who bears the liability? These and many other wreck removal questions were addressed by IMO’s Jan de Boer at the ACI’s Maritime Salvage & Casualty Response conference in London (13-14 September).   Speaking to a wide variety of stakeholders (Participants from salvage companies, tug & towage companies, authorities, ship owners, ship managers, P&I clubs

IUMI: Offshore Energy Insurance Market “Sinking”

Photo: International Union of Marine Insurance

 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

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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