The marine industry faces a host of emerging risks as change continues to sweep through the sector.
A new report from
Marsh has found that the industry is currently in a state of flux as changes come throughout the value chain, while marine insurance rates remain low.
Marsh’s report,
The Changing Tide of Risk: Expert Perspectives on the Marine Industry, contains a number of articles on a diverse range of subjects including disruptive technology, human capital and global trade. Marcus Baker, chairman of Marsh’s global marine practice, said that these emerging trends have forced the marine industry to re-examine basic assumptions that have driven traditional risk conventions.
“The current turbulent and unprecedented environment in the marine industry has spawned a period of continuous change,” Baker said. “As a result, companies in this sector now need to look afresh at the emerging risks they are facing.”
The marine insurance sector remains challenging as surplus capital continues to impact the industry.
“By general agreement, marine insurance rates are currently at levels that cannot be sustained over a long period, yet they show little sign of increasing,” the report states.
As emerging risks come to the fore, the report warns that it is not only ship operators that face challenges but also those along the supply chain. The report makes specific mention of the impact cyber risk could have on the marine industry as it remains a “looming concern” for both the marine and insurance industries.
“Although many questions remain, what does appear certain is that cyber issues will stay at the forefront of the industry for the foreseeable future,” the report notes.
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