While weather related-
losses
are nothing
new to the
marine insurance industry,
climate change has emerged
as a new threat that could
potentially cost the industry
millions.
“Climate change is one
of the most important
risks facing the marine
insurance industry today,”
says Dave Keeling, chief
operating officer at Santam’s
Associated Marine.
“As ambient temperatures
rise all over the world, the
increasing incidence of
extreme weather events
associated with climate
change has become a global
concern, posing challenges
to logistics and shipping
companies,” he told FTW.
Keeling says South Africa,
especially Cape Town,
typically experiences severe
winds from time to time,
resulting in shipping delays.
Last year
saw several
incidents of
container
losses as
a result of
extreme
weather.
In
December
2014, empty
containers
were toppled
by strong
winds in the container
terminal in Durban harbour,
which resulted in delays to
shipping schedules. Another
incident took place in Port
Elizabeth in November last
year when a container ship
lost 23 large containers in
strong winds, many of which
were not recovered.
“Besides the loss of the
cargo and
pollution
damage
to the
environment,
floating
containers
pose a threat
to marine
pleasure
craft such as
yachts and
commercial
vessels, and
also increase the potential
for passenger and third-party
liability claims to
marine insurers,” Keeling
added.
The increased risks
associated with climate
change demand that
insurers re-evaluate the risk
associated with maritime
shipping and invest in
technology to detect the
risk, says Keeling. It’s also
important that they develop
the underwriting skills and
knowledge to mitigate it.
“Ultimately, however,
shipping companies
will themselves
have to develop
new seafaring
technology and
find ways of
equipping
their vessels
to better
handle the
increased
frequency and
severity of storms,”
Keeling said.
INSERT & CAPTION
Insurers need to
re-evaluate the risk
associated with
maritime shipping.
– Dave Keeling
