Page 43: of Maritime Reporter Magazine (February 2023)

Although shipping losses have more than halved over the past decade, f res on board vessels remain among the biggest safety issues for the maritime industry. AGCS analysis of over 240,000 marine insurance industry claims between January 1, 2017, and December 31, 2021, worth approximately $10B in value, shows that these are the most expensive cause of loss, accounting for 18% of the value of all claims.

result in signi? cant noti? cation costs, erage after six years of above-average price increases for raw materials, rais- ? nes and penalties, and also lead to activity, estimates show insured losses ing awareness of the need to be more litigation or demands for compensation from natural catastrophes continue to sophisticated in understanding which from affected customers, suppliers and be above the 10-year average of $81bn, components and materials are critical, data breach victims, notwithstanding at $115bn. Hurricane Ian, which struck where they are sourced, as well as how any reputational damage to the impacted Florida in September, was the year’s to secure them.

company. costliest nat cat event, with an estimated Another positive development is an insured loss of $50-$65bn, which would enhanced focus on business continuity

Business Interruption rank as the second costliest hurricane of management. Initiating and/ or improv-

For maritime businesses, 2023 is like- all-time. ing this is the second most common ac- ly to be another year of heightened risks tion companies are taking to de-risk, ac- for business interruption, which ranked Developing De-risking Actions cording to the Allianz Risk Barometer. as number four for the industry, down There is little doubt that recent disrup- Whether it is planning for the fallout from the top spot last year. Despite posi- tions have increased awareness around from a cyber-attack or a natural catas- tive moves to diversify business models BI and supply chain risk and that compa- trophe, business leaders increasingly and supply chains since the pandemic, nies and governments are taking action see the value in investing more time and businesses continue to experience sig- to build resilience and de-risk. The Al- money in understanding what business ni? cant disruption around the world. lianz Risk Barometer results show that continuity planning can achieve. Com-

Covid-19 came as a massive shock, companies have begun to diversify their panies need to constantly review this creating global shortages, delays and businesses and supply chains, as well across the whole organization, given BI higher prices, while the war in Ukraine as stepping up risk management. More risk is not typically ? xed on a particu- triggered an energy crisis, turbocharging time and money are being invested into lar trigger, location or product but can in? ation. looking into and documenting the sup- originate from various areas, crossing ply chain strategies of businesses. Com- sites and continents.

Natural Catastrophes panies that have suffered disruption are Despite such progress, many compa-

Rounding out the top ? ve risks for ma- now improving transparency and data nies have yet to improve supply chain rine and shipping companies is Natural on supply chain risks. transparency or are not able to provide catastrophes, down from the number According to respondents, the most good quality data or willing to engage two spot last year. Perhaps the drop in common action taken by companies to with the relevant stakeholders to obtain rankings for nat cat is no surprise – war de-risk supply chains and make them it. This is usually due to a lack of aware- in Ukraine, an energy crisis, and the more resilient is to develop alternative ness among companies that have not ex- fallout from the Covid-19 pandemic, and/or multiple suppliers – although this perienced disruption and still see this as including in? ation and supply chain dis- can be a lengthy process and is not with- a remote possibility. But when disrup- ruptions, have tested business resources out its own pitfalls – while broadening tion happens, it can have catastrophic and commanded attention. geographical diversi? cation of supplier consequences, which is why insurers

There is no room for complacency, networks in response to geopolitical must continue to bring knowledge and however, as we witnessed in 2022 a trends is the third most common action. raise awareness for their marine and single event can cause losses in the bil- The war in Ukraine has been an eye shipping clients, given the growing con- lions of dollars. Although, the Atlantic opener for many, demonstrating how nectivity between many organizations.

hurricane season for 2022 was near av- a con? ict can result in shortages and www.marinelink.com 43

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