Page 42: of Maritime Reporter Magazine (February 2023)

The Final Word

Maritime’s Top Threats in ‘23

By Rich Soja, North American Head of Marine, Allianz Global Corporate & Specialty llianz just released its 12th 18% of the value of all claims. scape on decarbonization of the shipping

Risk Barometer, an annual As recent events have demonstrated, industry and the subsequent challenges corporate risk survey incor- roll-on roll-off (ro-ro) car carriers, the this poses to shipping companies. The

Aporating the views of 2,712 largest of which can hold as many as International Maritime Organization’s risk management experts in 94 countries 8,000 vehicles, can be susceptible to ? re (IMO) new regulation for global ship- and territories, including CEOs, risk risks, while there have also been a num- ping ? eets to measure and improve the managers, brokers and insurance ex- ber of blazes on container ships and in carbon intensity indicators is a recent perts. The overall global results reveal warehouses. example. It is widely expected that the

Cyber incidents and Business interrup- For shipping companies, the transport IMO is likely to revise the overall emis- tion as the biggest company concerns and storage of lithium-ion batteries are sion’s target for the shipping industry in for the second year in succession. Mac- an increasing cause of concern. Insurers the near future. The Net Zero Insurance roeconomic developments such as in? a- have long warned clients about the po- Alliance (NZIA) has also released the tion, ? nancial market volatility and a tential dangers that lithium-ion batteries target-setting protocol under its com- looming recession rose to the third spot can pose for the shipping and wider lo- mitment to achieve net zero by 2050. followed by the impact of the Energy gistics industries, whether they are be- crisis, a new entry in the fourth spot ing transported inside electric vehicles Cyber Incidents globally. or as standalone cargo, if they are not Digital and disruption dangers contin- handled, stored or transported correctly, ue to impact marine and shipping com-

Fire and Explosions with ? re being a signi? cant hazard. panies with Cyber incidents, such as IT

For the marine and shipping indus- With the incessant increase in global outages, ransomware attacks or data tries, Fire and Explosions lead the rank- demand for lithium-ion batteries, this breaches, ranking the third most feared ings of threats keeping management up risk is only going to escalate for the in- threat for the industry in 2023. Accord- at night with 29% of responses, up from dustry. Regularly assessing and updat- ing to the Allianz Cyber Center of Com- the third spot last year. While ? re risks ing prudent ? re mitigation practices, petence, the frequency of ransomware are often well understood and typically including preventative measures, ? re attacks remains elevated in 2023, while well risk managed, they remain a signif- extinguishing methods and contingency the average cost of a data breach is at an icant cause of business interruption and planning, remain essential for all mari- all-time high at $4.35mn and expected supply chain disruption. Commercial time businesses and their partners to to surpass $5mn in 2023. insurance claims analysis by Allianz lower the risk of loss from an incident. The con? ict in Ukraine and wider shows that ? re is the largest single cause geopolitical tensions are heightening of corporate insurance losses, account- Changes in Legislation the risk of a large-scale cyber-attack ing for 21% of the value of 500,000+ and Regulation by state-sponsored actors. In addition, insurance industry claims over the past A new entry hit the Risk Barometer’s there is also a growing shortage of cy- ? ve years (equivalent to $19.5B). second spot for marine and shipping ber security professionals, which brings

Although shipping losses have more companies this year. Changes in legis- challenges when it comes to improving than halved over the past decade, ? res lation and regulation received 25% of security for all industries, including ma- on board vessels remain among the big- industry responses. These include trade rine and shipping.

gest safety issues for the maritime in- wars and tariffs, economic sanctions, According to Allianz Risk Barometer dustry. AGCS analysis of over 240,000 protectionism and Euro-zone disinte- respondents, a data breach is the expo- marine insurance industry claims be- gration. Given the global nature of the sure which concerns companies most tween January 1, 2017, and December shipping industry, it is no wonder this (53%), given data privacy and protec- 31, 2021, worth approximately $10B risk is top of mind with our clients. tion is one of the key cyber risks and in value, shows that these are the most Within this category is the rapidly related legislation has toughened glob- expensive cause of loss, accounting for changing and evolving regulatory land- ally in recent years. Such incidents can 42 Maritime Reporter & Engineering News • February 2023

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