For Marine Insurers, Bigger Ships Carry Bigger Risks

A.M.Best TV episode explores the challenges faced by marine insurers, as new vessels that can carry up to 20,000 containers impacts pollution and increases the risks to cargos, hulls and cyber systems, as well as political risk, since the marine industry has a global presence.

“As marine underwriters, our concern is very high,” said David French, president of Star Marine Agency, Inc. “At present, 11 new vessels are being built with a value of $163-$165 million and a capacity to carry cargos valued at $800 million-$1 billion. For marine underwriters that is an aggregation of risk that must be taken into account every day, as just the loss of one of these vessels would be equal to the loss that Superstorm Sandy inflicted on the United States.”

Don Harrell, senior vice president at Liberty International Underwriters, addressed the concerns the industry has with cyber risk. “Among the top 10 risks that the industry will have for the next 10-20 years is cyber. This type of risk is enormous for the industry since it could cause interference to logistical, navigational and port tracking systems, as well as cause a vessel to run a ground, into infrastructure and/or another vessel.”

OLDWICK, N.J.--(BUSINESS WIRE)