Many challenges ahead for marine insurance industry, warns IUMI president

Many challenges ahead for marine insurance industry, warns IUMI president

New York: German marine insurance executive Dieter Berg sees hazards ahead for his industry, not least in the form of cyber threats and the trend towards mega vessels.

Speaking at the “Marine Insurance Issues” seminar in New York on Thursday, the president of the International Union of Marine Insurance (IUMI) warned that growing reliance on IT was increasing the exposure to cyber risk.

He also told his audience at the American Institute of Marine Underwriters’ (AIMU) biennial event that the supersizing of container ships was affecting insurers because of the vastly increased value of cargoes and the strains on vessels’ structural integrity.

“We are facing increased exposure from information technology, from the growth in offshore oil and gas exploration and from the never-ending search for economies of scale within the shipbuilding and operating sector,” Berg said.

“Added to that, uncertainty over oil prices and the general economic picture is exposing marine underwriters to a level of risk we’ve not experienced before.

“We need to ensure we fully understand the risks our industry is facing and offer products that match these new trends and deliver adequate cover for our clients”

Berg also said the greater complexity of offshore projects and the rise of mega subsea construction projects in remote locations were areas of additional risk.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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