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.”