Marine Link
Wednesday, June 20, 2018

Insurance News

DMA: Third Party Liability Insurance Mandatory for Small Vessels

Photo: Danish Maritime Authority

After new regulation, all speedboats with a hull length below 15 m, personal watercrafts/jet skis and similar vessels must now be covered by a 3. part liability insurance. Danish Maritime Authority informed that if the vessel does not have insurance coverage, you are not allowed to operate it. The new requirements regarding mandatory third party liability insurance, strict liability in case of personal injury and loss of pendant as well as wider options for confiscation of vessels have come to into force yesterday (May 15).

Marine Insurance’s Risk Rating Revolution

© zegendos / Adobe Stock

Why insurers cannot afford to be left behindAccording to Maersk, “everything that can be digitized will be digitized”, and there is no doubt that the world of shipping is currently undergoing a digital revolution. From vessel movement data to port statistics and engine diagnostics and data, the latest technology empowers insurers to segment and optimize their existing portfolio, identify new opportunities and offer truly connected policies.However, risk measurement and ratings remain an issue.

Insurance Gaps Leave Shipping Exposed to Cyber Attacks

File Image: A Maersk product tanker underway (CREDIT: Maersk)

Ships exposed through GPS systems, have limited back-up; cyber insurance typically doesn't cover jamming, property damage. Shipping companies grappling with the threat of cyber attacks on vessels are finding insurance policies often fall short, officials involved in both industries say, a risk that could feed through into global prices. Digitalisation means electricity networks, emergency services, industry and agriculture are all vulnerable to hacking by criminal gangs for extortion or, for political reasons, by militant groups or foreign states.

Staying Afloat with Strong Workboat Insurance

© donvictori0 / Adobe Stock

When it comes to insuring your assets, changing markets and risk variables demand better understanding of the underwriting process, as well as a long-term, stable relationship with an insurer who – like you – is in for the long run.U.S. inventor Thomas Edison once said, “There is no substitute for hard work.” Nobody knows this better than the men and women who operate diverse and industrious workboat fleets.Ferrying commuters, towing dry and liquid bulk, and assisting larger ocean…

Understanding the Ups and Downs of Insurance

 Rich DeSimone is President of XL Group’s North America Marine business.  XL Group plc’s (NYSE: XL) insurance companies offer property, casualty, professional and specialty insurance products globally. w: http://www.xlgroup.com

Business is cyclical, and nowhere is there more evidence of its cyclical nature than in the insurance market, characterized by ups and downs in insurance premiums, coverages and profitability. By most accounts, the current insurance market has been one of the most competitive in recent memory. With intense price-cutting and expanding coverages, these conditions are typical of a “soft” market which is very much a buyers’ market. The obvious benefits of a ‘soft’ market to the buyer are lower insurance premiums…

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, and logistics inland marine products, among others. Most recently, he served as Chubb’s regional inland marine practice leader and underwriter.

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, and the Insurance Services Framework Agreement and the transactions thereunder constitute continuing connected transactions of the Company.

Marine Insurance: Spring Cleaning Should Include Evaluating Insurance Strategy

An essential part of spring cleaning is sorting through what you have, deciding what needs to be kept, and throwing out what can safely be eliminated. The tidy end result lets you move forward in the best shape possible. An annual “spring cleaning” of insurance coverage is equally valuable for a business operation. Whether the economy is booming and cash flow is substantial, or times are tight and shaving costs is essential, a business should step back at least once a year, take a look at its assets, and evaluate its current risk management strategy. The goal is to make sure the company is maximizing its benefit from premium dollars.

“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, the use of ‘smart’ contracts essentially converts contractual obligations into lines of computer protocols, which facilitate, verify, or enforce its performance.

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 have seen significant losses. The…

Inland Marine Insurance: Assuring Property and Goods Move Forward

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, later to morph into a product to protect all international transportation regardless of mode.

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. With all of this in mind…

ABS Raises Cyber Awareness to Marine Insurance Industry

Pictured Left to Right: Rear Admiral Mark Buzby, USN, Ret., Maritime Administrator, U.S. Maritime Administration; Drew Feldman, AIMU Chairman; Christopher J. Wiernicki, ABS Chairman, President and CEO. Photo: ABS

ABS Chairman, President and CEO calls upon insurance industry and class to work closer together in addressing the next-generation safety system. Christopher J. Wiernicki, Chairman, President and CEO of ABS, addressed the American Institute of Marine Underwriters (AIMU) today, describing the future of maritime safety and risk mitigation as it relates to cyber safety as well as outlining how the classification and insurance industries can strengthen their collaboration as the progression of cyber and autonomy propel maritime safety into new waters.

Brexit Prompts North P&I Club to Set up Dublin Subsidiary

British ship insurer North is setting up a new European Union subsidiary in Dublin in case Britain loses access to the single market after Brexit, becoming the first of these specialised providers to announce such a move. Insurers are making contingency plans after Britain’s vote to leave the EU means they could risk losing “passporting” rights that allow UK financial services firms to trade in Europe without the need for locally regulated entities. Britain dominates the global marine insurance market and losing access to specialist Protection and Indemnity (P&I) clubs like North could weaken other parts of the country’s multi-billion pound shipping services sector.

DMA Call for Various Certificates

Image: Danish Maritime Authority

Time has come to apply for renewal of CLC, Bunker, Athens and Wreck Removal Certificates from the Danish Maritime Authority(DMA). The certificates must be renewed once a year when the underlying insurance expires. Ships that are required to hold a certificate must not operate without valid certificates. Many certificates expire on 20 February 2018; these are typically the CLC, Bunker, Athens and Wreck Removal Certificates based on P&I insurance. Some CLC, Bunker, Athens and WRC Certificates expire on dates other than 20 February 2018.

MN100: MOPS Marine License Insurance

MOPS manager Randy O'Neill (Photo: MOPS Marine License Insurance)

Since 1935, MOPS Marine License Insurance has defended the USCG licenses of mariners operating in every maritime sector in the United States. Its network of over 80 maritime law firms, representing almost 200 experienced maritime attorneys, provides MOPS policyholders with personal legal representation from the marine casualty to final disposition. MOPS provides Unlimited License Defense, Full or Partial Income Protection, Civil Legal Defense, Civil Penalty Defense, Criminal Defense, Professional Liability, and Professional Equipment/Instruments Protection. The firm has 12 employees.

AGCS Makes Leadership Changes in North America

Allianz Group’s specialist corporate insurer Allianz Global Corporate & Specialty (AGCS) announced today that effective December 31, Henning Haagen will take over as North American Regional Head of Specialty Lines, and Rich Soja will become the North American Regional Head of Marine. These appointments follow the retirement of John Barnwell after more than 20 years with the company. While taking on these new responsibilities, both Haagen and Soja will continue in their current roles as Northeast Zone Executive in the U.S. and Global Head of Inland Marine, respectively. Since joining Allianz in 2008, Haagen has held a range of global leadership positions within the organization both in Munich and London…

MN100: XL Catlin

(Photo: XL Catlin)

XL Group plc through its subsidiaries and under the XL Catlin brand, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. The firm employs 7,000 and has sales of $9,300,000,000 annually. XL Catlin’s insurance segment provides commercial property, casualty, professional liability, environmental liability, aviation and satellite, marine, product recall, political risks, surplus lines and other coverages.

Skuld Says Joint Marine Insurance Has Legal Black Hole

It is neither controversial nor new to say that co-assureds under a joint insurance policy cannot claim against each other in respect of a co-insured loss. It is taken to be an implied term and the possibility of financial claims between co-assureds is irrelevant: the insurer will pay. If there are only two, an owner and a charterer, in the contractual chain, and if the charterer is held liable, then the matter goes no further: the insurer covers the loss and there is no recourse claim to be pursued. However, what happens if there is a guilty third party and the insurer wants to pursue a subrogated claim (against, say, a sub-charterer on materially back to back terms) to recover its financial outlay?

Recent Casualties Highlight Importance of Cargo Insurance - iContainers

The Indian Coast Guard battles a fire aboard the Maersk Honam earlier this month (Photo: Indian Coast Guard)

The ocean freight industry has seen several major incidents over the past few weeks, including two fires on board two separate Maersk vessels, and a containership collision in Karachi Port that forced the temporary closure of the port. These incidents underscore the importance of always buying cargo insurance to protect merchandise and cushion damage, says Klaus Lysdal, Vice President of Sales and Operations at iContainers, a 100 percent online freight forwarder. The major fire…

IUMI Cautions about Global Marine Insurance

Photo: International Union of 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.

Renewal Time for CLC, Bunker, Athens and WRC Certificates

Photo: Danish Maritime Authority

Time has come for most shipowners to apply for renewal of their CLC, Bunker, Athens and Wreck Removal Certificates from the Danish Maritime Authority. Certificates must be renewed when the underlying insurance expires. Ships subject to a requirement for a certificate are not allowed to operate without the certificate. All CLC, Bunker, Athens and Wreck Removal Certificates based on P&I insurance typically expire on 20 February 2017. Some CLC, Bunker, Athens and WRC Certificates will expire on a date other than 20 February 2017.

Iranian Fleet Regains P&I Insurance

Pic: Islamic Republic of Iran Shipping Lines

A large portion of Iran’s shipping fleet has regained Protection & Indemnity (P&I) insurance from Steamship Mutual, reports Mehr News Agency. Steamship Mutual, said in a statement that a considerable number of Iranian vessels have taken out insurance form the company. "We are pleased to observe return of Iranian directors to the board of one of the largest and most diverse P&I Clubs in the world,” Jonathan Andrews, Director & Head of Eastern Underwriting in Steamship Mutual, said.

Maritime Reporter Magazine Cover Jun 2018 - Green Marine Technology

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News