CARGO AND MARINE INSURANCE
of the significantly changed perception of war risks , as it is the reality of the totality of the vessels currently detained due to the conflict .
“ The total sum of vessels detained / deprived pales into insignificance relative to the reported US $ 15bn of aircraft confiscated or deprived from owners due to the conflict – some 388 foreign leased aircraft . In contrast , the marine exposure is , in total , likely to run into tens or hundreds of millions .”
What does 2023 hold in store for shipping ? Despite the headline-grabbing effects of the Ukraine war , there continues to be “ a surge in appetite to underwrite marine cargo ”, according to a separate report from Aon .
“ Specific risk appetite varies among insurers , but all show interest to write medium-sized general cargo accounts , while some are open to writing more complex project cargo and DSU .”
Aon continues : “ We are seeing a trend for project cargo and delay-in-startup insurance from clients who are entering into renewable energy projects , such as wind farms , solar farms and battery energy storage systems . The appetite for project cargo in the market is increasing , but with large limits and short indemnity periods , only a few can write 100 % capacity .”
Looking ahead to this year , Aon adds : “ The market will always be subject to industry losses , as well as any further impacts COVID- 19 and the war in Ukraine have on the reinsurance market . Importance will be placed on accurate declaration of goods and shipments , marine warranty surveys and client risk management strategies . In turn , we will likely see rates ease and capacity increase .” insurtechdigital . com 103