Innovation in the marine and cargo classes is sorely needed to help this sector weather oncoming challenges – but will conversations at IUMI conference garner insurer support?
By Jon Guy
Marine insurance has always been viewed by some commentators as a very distinct marketplace.
Arguably the oldest of the insurance classes, marine underwriters and brokers tend to remain in the sector with little appetite for change.
The world’s marine and energy underwriters will soon be heading to the German capital of Berlin for the International Union of Marine Insurance’s (IUMI) annual conference between 15 and 18 September 2024 – this year’s event marks the association’s 150th conference for IUMI members.
The conference next week comes at a time when the marine sector has never been more topical to businesses and governments.
The vast majority of the world’s goods are shipped by sea, but at present, climate and geopolitical risks have seen access to and the use of the world’s two most important shipping routes severely limited.
Ongoing attacks on ships looking to access the Suez Canal has seen vessels divert via South Africa’s Cape of Good Hope, while a lack of rainfall has forced the Panama Canal to restrict the size and number of vessels that can transit its locks.
Alongside the need for insurers to support clients in navigating new rules designed to drive sustainability and delegates in Berlin will have a lot to talk about.
Navigating murky waters
The cargo market has growing concerns over the impact of canal closures on the world’s ports.
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The certainty that had been at the heart of port schedules, which allowed the swift and efficient loading and unloading of cargo, has been thrown into chaos as transit times lengthen considerably and the impact of weather conditions further impact voyage times.
This has led to lengthy offshore wait times for vessels that can reach their destination for a berth to become vacant.
Cargo owners and businesses also face warnings that the Asian cyclone season is beginning in earnest. This can cause severe weather events from October onwards.
All too often, conferences and events will assert that they come at a vital time for their specific sector – but this year, IUMI can make such a claim because the marine industry stands at a precarious point.
The maritime sector will be watching closely as there are industry-wide calls for greater support from insurers to enable vessels to better navigate the challenges they face.
Price is never discussed at IUMI, but a market response is expected and innovation will be needed if the industry is to tackle the threats.
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