Dearth of skills plagues marine insurance sector

Truck hijackings remain one of the biggest threats to the transportation industry, says Shivien Pillay, recently promoted business unit head: marine for Aon South Africa. “More often than not, transport companies subcontract with various parties. The client has very little control over this and when losses occur, it is very difficult for the insurers to recover from the liable party.” Pillay says clients need to ensure that contracts are in place with their transporters and that they have adequate liability insurance cover in place, and furthermore that their transporter subcontracts on the same basis. The marine insurance industry in South Africa is a very competitive and sophisticated market that is hugely influenced by rates, says Pillay. “The global market is still ‘soft’ and rates are further reducing. This has a direct effect on our local markets making them uncompetitive. These rates are not sustainable however as claims are increasing which results in a huge ‘spike’ in rates or deductibles at review time, prompting clients to change their insurers.” He says underwriters in South Africa match up very well with their international counterparts despite skills still being retained by a select group. “There is however no adequate training in the marine field. History has shown that knowledge has been gained by a hands-on approach,” he says. “Unfortunately we now face a shortage of this experienced talent and there is definitely a gap in the market place.”