Maritime insurance has a rich and global history dating back to 3000 BCE, when ancient Babylonian and Chinese merchants sought ways to mitigate the risks of their sea voyages.
Since then, the concept has evolved and modernised in tandem with international industrialisation and trade, covering a wide range of risks from hull and machinery to cargo and liability.
Though the vessels, equipment and technologies have changed, maritime insurance is in many ways still a time-honoured traditional practice, especially in Asia. How should insurance leaders honour the past while infusing growth and new advancements into the marine and hull discipline?
Qualified practitioners: standard bearers for the industry
The maritime trade industry is high stakes for vessel owners: Unpredictable seas, rocky shores, and crowded ports are just a few of many potential risks that could disrupt the flow of cargo that fuels the global economy. Marine and hull claims are critical for vessel owners, offering them financial protection against the high costs of repairs, replacements and even total losses.
In high-risk trade, policyholders should be served by qualified and accredited adjusters who uphold high standards of care. Experienced TPAs should have global knowledge of this area of insurance to be sure estimates are accurate, hull or cargo issues are not overlooked and policyholders are accurately protected.
In growing our teams in Asia over the past year, Sedgwick has sought out professionally accredited adjusters in addition to building out new capabilities such as in-house marine surveying in Indonesia and Malaysia.
Our qualified adjusters have more than three decades of experience managing all types of marine and transportation claims from large, complex losses to low cost/high frequency claims.
Stay far ahead of risks
Navigating the oceans, vessels are exposed to an array of risks that can lead to damage and disruptions that can result in losses that go far beyond the physical hull. Marine experts must be prepared to anticipate and assess consequential damage in a claim, such as business interruption loss or fraud, to fully protect the interest of policyholders.
Fraud in particular is on the rise in Asia, including but not limited to marine claims. To combat increased fraudulent activity, dedicated fraud experts in Malaysia and Indonesia work onboard vessels and with policyholders to detect this activity and report it to the appropriate government committees.
Training and educating partners in the marine ecosystem also help to mitigate risks like fraud. Our experts’ insights on topics like risk exposures and policy conditions have been welcome resources to corporate clients, banks, local marine transport associations, and market industries.
Dedicated risk improvement sessions with individual marine clients can also significantly reduce losses from business interruption and anticipated risk events like fraud.
Real-time client support
In a discipline as unpredictable and as broad in scope as marine, insurance experts need to be ready to meet policyholders where they are and assist through any challenge.
Collisions with other vessels, groundings on rocky shores, fires and machinery breakdowns are just a few examples of incidents that can befall a ship at sea, and they can happen at any time.
Technology tools are helpful, but in today’s marine market, the human element is still table stakes for working through these types of claims. Policyholders look for the guidance and real-time expertise of claims administrators with regional knowledge and who can help them in-language.
As a best practice, Sedgwick has a dedicated 24/7 service line that policyholders can call and speak to a marine expert on standby. It’s our job to be there for clients, who take comfort in knowing help is there for any type of marine crisis when they call.
No matter the discipline or specialty, insurance is a care-focused service first. Leaders who can keep that value at top of mind will be better positioned to thrive.
Equipping the next generation of talent
Maritime insurance has developed as a practice over hundreds of generations – to keep the practice going, leaders must continue to invest in the knowledge and skills of the next generation of talent.
Ongoing training is essential for marine and hull adjusters to work on both claims handling and client support skills. Marine insurance professionals must weave together many different areas of expertise, including engineering, naval architecture, international law, and business skills in addition to the problem solving and report writing that comes with any insurance practice area.
No two marine cases are exactly the same. It takes talent, time and experience to ensure clients are adequately supported through the process of a claim.
Training programs also help with attracting and retaining talent, as young workers look for ways to uplevel their work experience and further their career. As insurance leaders strive to engage the youngest generation of workers around the world, including in Asia, to insurance roles, attention to career development opportunities will be transformative especially in specialized insurance practices like marine and hull.
The marine insurance leaders in Asia must embrace a global approach to this inherently global practice, ensuring that their strategies align with the dynamic nature of international maritime trade. As their needs evolve with the changing tides and flow of trade, insureds require partners who are both adaptable to new challenges and steadfast in their expertise. By balancing innovation with tradition, insurers can provide the support necessary for navigating the complexities of modern maritime operations. A
Ms Elizabeth Gill is the general manager for marine at Sedgwick.