A blockage in the Suez Canal, a vessel striking a bridge in Baltimore, a ship obstructing a harbour entrance: seemingly local incidents can have global repercussions within days. Cargo is held up, production lines grind to a halt and shipping routes are diverted. For the maritime sector, such an incident is no longer an isolated loss. It marks the start of a chain reaction that extends far beyond any single party.
“We always ask what keeps the client awake at night.”
Insurer HDI examines this chain from four perspectives: hull underwriting, cargo underwriting, loss prevention and claims handling. Frank van de Korput (Lead Underwriter Hull), Michael Schunselaar (Lead Underwriter Cargo), Kees den Ouden (Senior Risk Engineer Marine) and Stephan Zwiers (Claims Handler Marine) each see a different part of the same journey.
From geopolitics to new fuels
Van de Korput sees the traditional risk landscape in shipping changing. Alongside collisions, fire and liability, geopolitical tensions, extreme weather and new fuels such as hydrogen and ammonia are playing an increasingly important role. “We were recently discussing ammonia. The toxicity risks involved, and the arrangements for managing them, are still relatively new territory,” says Van de Korput. Digitalisation and cyber risks are also changing vessels’ risk profiles, with implications that extend well beyond IT. Schunselaar sees the same shift in cargo insurance. Geopolitical instability disrupts trade routes or puts them under strain, while rivers running dry affect the flow of goods. Supply chains are so interconnected that a disruption on the other side of the world can quickly affect a Dutch importer. For Schunselaar, insurance therefore starts with a meaningful conversation. “We always ask what keeps the client awake at night. What happens if a loss occurs somewhere along the chain?” he says.
People make the difference, claims provide lessons
Despite advances in technology, Den Ouden believes people remain central to safety on board and throughout the supply chain. Staff shortages increase this vulnerability: heavier workloads can lead to lapses in attention, from incorrectly positioned containers to drivers disregarding traffic rules. In his view, discipline is the hallmark of a strong safety culture. “Disabling safeguards built into a system is unacceptable, whether during operations or testing,” says Den Ouden. For Zwiers, claims offer particular insight into future risks. Recurring causes of loss are an important warning sign. “Climate risks certainly stand out. We have little control over them,” he says. New technology also introduces uncertainty, potentially making some risks uninsurable under current terms and conditions.
The four disciplines come together in what HDI calls loss prevention: identifying risks before they result in losses. According to the experts, businesses that understand their own processes are easier to insure. This reflects a shift from responding after a loss to working together continuously to identify where the next link in the chain could fail.
