Opening this week’s International Union of Marine Insurance (IUMI) annual conference in Berlin (Germany), President Frédéric Denèfle focused on how change was likely to impact all lines of marine insurance business, according to an article published on their website.
Marine insurance
He highlighted the recent geopolitical tensions as one of the key drivers of change. War risks, sanctions, and embargoes were increasing and this was impacting traditional shipping routes and international trade more generally. He raised concerns over vessel operators opting for the longer sea routes around Africa to avoid high-risk areas and asked if vessels and their crews were prepared for the specific navigational challenges they would face. Financial costs and the environmental impact would also be a concern.
Denèfle also pinpointed changes due to the evolution of global markets, both technical and commercial, which would affect how vessels are operated and how cargo shipments and logistics chains would be organized in the future. Nearshoring would have a particular impact, he said.
Coupled with this, the steps being taken by the shipping community to reduce its impact on the environment were beginning to make themselves known. New fuels, new vessel designs, new operating practices, and new regulations would all impact and would require a renewed focus. He specifically highlighted the EU’s Emissions Trading System that became law in January of this year.
More widely, change would be encouraged by the international economic situation and the relationship between countries and their appetite for global trade versus nationalism. More restrictions and regulations would inevitably lead to a reduction in marine cargo. Conversely, many large countries were sitting on untapped commodities that would likely be exploited in the coming years. This had the potential to unlock more cargo and new shipping routes, he said.
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Source: IUMI
