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INSIGHTS intimate, thorough knowledge of the maritime industry and two crew members. Piracy is still a concern and is surging in the risks its up against – are in demand. With increasing gov- some parts of the world. In June 2015, the Orkim Harmony ernance and the need for compliant programs, it is even more was hijacked. Unlike pirates off Somalia who seek ransom, important to partner with the right marine insurance carrier. in Southeast Asia, these criminal gangs are targeting ships to

So while the maritime industry enjoys today’s insurance rates, quickly of? oad their fuel cargo to sell later. they are wise to carefully evaluate what they are receiving in • Emerging Markets: The maritime industry is already return such as depth of knowledge, and risk management ex- booming in Brazil and global insurers are building underwrit- pertise including loss prevention and claims management. ing capabilities there to meet continued demand for local cov-

Experienced underwriters and claims specialists can play a erage. And some are watching other parts of the world, like key role in helping ? rms effectively address both traditional Iran where a nuclear deal between world powers – known as risks, and the risks that are more complex than ever before. the P5+1 – led to the removal on January 16 of internation-

Consider these risks that many maritime companies must con- al oil export prohibitions as well as restrictions on banking, tend with: insurance and shipping for Tehran. US sanctions are still in • Larger Vessels: Ships are getting bigger – much bigger. place. Obtaining international insurance cover will be vital as

The average size of container vessels navigating US ports has Iran looks to take advantage of foreign shipping opportunities. grown considerably over the past ? ve years. Most of the ports • Talent: Human factors are a constant concern for the have not yet made improvements to accommodate the indus- maritime industry. It’s becoming increasingly dif? cult to try’s new megaships looking to provide the appropriate water maintain well-trained and quali? ed ship crews. The increasing draft, berth size, terminal space, appropriate size dock equip- prevalence of new technologies that require special training is ment and rail connections. making the task even harder. • Higher Cargo Values: International trade volumes con- tinue to climb. With more cargo on larger vessels there is an Business risks are constantly changing. Maritime risks are increase in concentrated values which presents the potential no exception. And with so many maritime companies operat- for a large catastrophic loss. ing in today’s global trading environment, using new technol- • Arctic Trade Routes: Global Warming and sea ice melt- ogy, advanced systems, and larger vessels, there is no question ing have opened the Arctic trade routes for longer periods of that the industry has its risk management work cut out for it. time. Shipping companies are optimistic about the potential, Fortunately, there is no shortage of marine insurers eager to in particular to save time and money. To compound the situ- support their customers’ needs and activities, making sure in- ation, cruise ships are looking into the possibility of adding surance coverage evolves to provide the right protection for

Arctic trips to their portfolio of exotic cruises. These new ac- new and emerging risks.

tivities could be very problematic in the event of a casualty as there is no current infrastructure and little services to respond to emergencies.

• Cyber Threats: The majority of cyber-attacks are at- tempts to obtain personal or ? nancially sensitive data. Now, companies across all business sectors – not just maritime companies – are bracing for what they anticipate will be more sophisticated cyber-attacks. Attacks that attempt to in? ict damage to property and operations by seeking to take com- mand of industrial control systems such as vessel navigation and propulsion systems, cargo handling and container track-

The Author ing systems at ports and on board ships. These are all con- trolled using software that is fundamental to smooth running

Anne Marie Elder is XL Catlin’s Chief

Underwriting Of? cer, Marine – Americas. operations. Highly-skilled hackers have demonstrated the

She joined XL in 2011 as SVP, Chief ability to penetrate the systems used by the maritime industry,

Underwriting Of? cer, Inland Marine. A with potentially disastrous consequences.

graduate of the United States Merchant • Political Unrest: Recent events have all businesses op-

Marine Academy at Kings Point, she is part of the Transportation Committee of the erating with extra precautions, not just the maritime industry.

Inland Marine Underwriters Association

Early last year, a Libyan warplane from forces loyal to the (IMUA) and currently is Chair of IMUA’s internationally recognized government bombed a Greek-op-

New England Advisory Committee.

erated oil tanker anchored at the Lybian port of Derna, killing 20 Maritime Professional 1Q 2016| | 18-33 Q1 MP2016.indd 20 2/29/2016 10:52:42 AM