From geopolitical instability to innovative new technologies, the shipping industry faces an increasingly complex and uncertain operating environment. Navigating these challenges will require more integrated and coordinated marine insurance products and services, according to Anthony Lamb, Global Underwriter Manager, Marine and Shiwei Jin, Head of Multinational Solutions, APAC & Europe.
The global shipping industry has shown its resilience during the conflict in the Middle East and blocking of the Strait of Hormuz. Despite the disruption and increased cost of operating, shippers have ensured continuity of service and kept world trade flowing.
Of course, conflict is not the only big challenge that shipping companies and cargo interests must navigate. The industry finds itself at a crossroads with the transition to alternative fuels, automation and electrification. All this at a time of shifting trade and supply chains, fragmenting regulation and a growing skills shortage.
So how are marine insurers responding to the changing needs of shipping companies and cargo owners? Helping marine clients navigate these difficult times requires more insights, data and risk management advice anchored on our advanced proprietary technology platforms. It also demands the right talent and knowledge to deliver the products and services clients need in a joined-up way wherever our clients are.
Global control and oversight
As shippers and cargo owners operate in an increasingly challenging environment they understandably want greater visibility, oversight and control over their risks and insurance. The ability to manage risks globally and respond quickly in an increasingly fragmented regulatory and geopolitical environment has never been as critical.
A well-designed multinational solution for marine and cargo risks that combines local policies with a global master policy places an organization’s risks at its core, cultivating and enhancing integrated and centralized risk management practices. This helps to refine risk evaluation, risk transfer and risk mitigation processes by aligning and coordinating risk management, risk engineering, insurance coverage and claims management.
A multinational solution is all about driving consistent, compliant and transparent coverage and claims handling around the world. In marine, AXA XL has put a lot of work into harmonizing global policy wordings to ensure consistency of coverage and avoid unwanted gaps in cover. For risks requiring tailored coverages, an established framework and multinational expertise support local and producing offices in order to deliver best in class marine insurance solutions for clients.
Leveraging technology
With the increasing complexity of marine risks, technology is helping to generate insights and help marine and cargo clients identify and manage risks. For example, along with customized consulting, training and guidance, AXA XL offers proprietary risk assessment tools that help cargo owners make informed decisions when transporting and storing cargo: ShipEv@l benchmarks and scores vessel suitability for specific cargoes while StorEv@l assesses storage conditions and risks worldwide.
Technology is also enabling risk managers to gain more control and visibility over their insurance administration and information. Our new multinational portal empowers clients to manage the implementation of their multinational solutions program within a single, secure, user-friendly system across our 20+ products and a multinational solution network of over 200 countries and territories. The portal provides immediate access to local policies, certificates and invoices as soon as they are issued and uploaded without manual data re-entry any time lag. AXA XL has also developed API client connectivity that enables real-time secure exchange of data including premium and policy related documents.
We continually look for ways to use technology to add value and increase efficiency for marine risks. For example, we recently introduced a new online tool that enables clients to notify large, high-value cargo risks to AXA XL Risk Consulting for review, triggering expert onsite risk surveys. We have also successfully rolled-out a self-certification platform through a world leading purpose-built platform for marine cargo that enables clients to quickly and efficiently generate proof of insurance for cargo shipments. Across our wider network, AXA Sigorta, has recently launched a new portal for certificate issuance to further enhance the real time servicing capabilities for Marine Cargo and Freight Forwarder's and Carrier's Liability. Through more automated data collection and increased granularity, we are helping risk managers evaluate and demonstrate the effectiveness of loss prevention actions in measurable figures.
Providing value beyond insurance
Shippers and cargo owners are also in need of support that goes beyond pure risk transfer. They are hungry for data, insights, tools and advice to aid decision making, enhance risk management and make targeted investments and loss prevention.
For example, when one Asia-based trading company suffered a number of cargo shortfalls, our risk consulting team recommended targeted actions that halved shortages per shipment, saving the client over USD 700,000 annually. Proactive risk mitigation and targeted training programs also ensured that another client - a leading Asian offshore energy service company - prevented recurrence of costly machinery breakdown losses.
AXA XL has many long-standing partnerships with large multinationals in the industrial, energy and aerospace sectors to protect and insure critical and high value specialist cargos, from space satellites to power generators and renewable infrastructure. Last year, we helped one Europe-based engineering client avoid approximately EUR 52 million in project cargo loss costs through 350 inspections worldwide at a cost of just EUR 1.5 million. On average, we perform around 2 to 4 surveys a week anywhere in the world.
Integrated products and services
Many of today’s complex cross-border risks require holistic solutions. And as customers take an increasingly centralized and sophisticated approach to their risk management, they require marine and cargo insurers that can deliver products, services and expertise in a coordinated and consistent manner.
Our underwriting, risk engineering and claims teams work as one, delivering global expertise and capabilities at a local level. With teams across Europe, Asia, and North America, AXA XL’s Marine Risk Consulting delivers regionally relevant, globally aligned guidance, including risk assessment, advisory and technical support for a wide range of hull, liability and cargo risks. In addition, multinational clients are supported by a team of dedicated multinational solutions experts that work closely with marine specialists and local teams.
Bon voyage
The maritime industry has proven its resilience and agility, but shippers and cargo owners will require much more from their insurance partners as they navigate the challenges ahead. Marine insurance will increasingly be less about purchasing policies and more about an ongoing dialogue and collaboration as we traverse the changing maritime risk landscape.
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Global Asset Protection Services, LLC, and its affiliates (“AXA XL Risk Consulting”) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. AXA XL Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, AXA XL Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
US- and Canada-Issued Insurance Policies
In the US, the AXA XL insurance companies are: Catlin Insurance Company, Inc., Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., XL Specialty Insurance Company and T.H.E. Insurance Company. In Canada, coverages are underwritten by XL Specialty Insurance Company - Canadian Branch and AXA Insurance Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following AXA XL surplus lines insurers: XL Catlin Insurance Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor Insurance Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.