Marine insurers gather to debate challenges

12 September 2008

Cargo ship
The IUMI conference takes place next week.
Lloyd’s underwriters will be out in force at the world’s major marine insurance conference next week where delegates will discuss a range of significant threats and challenges.

Five hundred participants will be attending this year’s Vancouver-hosted International Union of Marine Insurance (IUMI) conference many of whom are participants from the Lloyd’s market.

Agenda setting

Neil Roberts, Senior Technical Executive at the Lloyd’s Market Association, says the importance of the conference is increasing at a time when the market faces greater threats, and when competition and capacity continue to put pressure on premium levels.

“There are a number of challenges that the conference participants will discuss,” he says. “One is ship construction and the standard of vessels being produced by some developing nations. We’ve recently seen one classification society reject two vessels that were built in new yards. And questions are being raised about how construction standards can be maintained given the pressure for new building capacity.”

Roberts adds that delegates will also discuss the increase in pilot errors and the associated claims.

“The [rising] price of steel and the availability of repair facilities mean the cost of individual claims is increasing significantly. There’s also an ongoing debate about the increased criminalisation of seafarers who are involved in incidents. It’s driving some pilots away from the industry and that’s contributing to negative effects.”

Pirate activity

The continued rise in piracy and attacks on shipping in the waters off Somalia will be on the agenda.

“There’s an international task force in the area,” he says. “But if it gets to the point where owners are unwilling to send their vessels there because of the threat of attack, it may mean far longer voyages to avoid Somalia. If so, it will have a profound effect on journey times and cost given the additional fuel that will be needed.”

Exchange of ideas

Roberts says the IUMI conference is a vital forum for marine insurers and Lloyd’s is keen to play a role.

“It brings the world’s underwriters together to exchange ideas and discuss solutions to challenges and problems. The marine market is truly global and it’s important that the marine insurance community communicates effectively to identify trends and manage risks.”


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Last updated on 12 Sep 2008