Mike Brews, Director, Horizon
Marine insurance is a sector of the market, often overlooked by many brokers and clients. Essentially, marine insurance covers the risk of goods / cargo being moved from point A to point B, either by road, rail, air or sea.
The current international conflict climate has brought some of the lesser understood risks to the fore with one of the most frequently used trade routes, the Suez Canal, seeing traffic drop by up to 70%. This adds up to 4 additional weeks voyage for goods being shipped from the East to Europe. Vessels are rounding the tip of Africa in conditions, many of the crew have not experienced, causing unexpected loss of cargo when the vessel encounters the rough seas off the Cape coast.
Add to this the climatic changes being experienced across the world. Storms are getting bigger. Rain is more intense. Drought and fires are on the increase. All of which either increases the number or size of losses we are experiencing.
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So, what can the market do? This is where an experienced broker comes in. Brokers will partner with specialist marine insurers, such as Horizon Underwriting Managers, to tailor-make and design a marine insurance policy specifically suited to the client’s needs. They will examine the risks specific to the product, as well as the voyages, destinations and modes of transport utilized, all while keeping a balance between cost and cover.
With the vast variety of products, packaging, voyages and cover out there, the need for experience in the marine industry is vital. Understanding how products react in different environments as well as ways to mitigate those risks comes with experience, knowledge and a little scar-tissue.