The Inland Hull, Fishing Vessel and Yacht (IFY) committee had lively meetings at the annual conference in Singapore in September. The presentation on AI, piracy, illegal fishing and local issues in yachting led to an exciting panel discussion led by committee member Frouwke de Vries.
The committee report included highlights of accomplishments and challenges, with the committee narrowing its theme to a member’s observation that “Different technology presents different risks.” In one form, the committee was pleased that the inclusion of special deductibles for lightning strikes have become universally included on yacht policies to address the increasing value of electronics – to the point that the accumulated cost of yacht systems may be greater than the value of the hull composite.
It is encouraging that technological advancement, whether it concerns autonomous vessels or alternative fuels, has moved from the planning and “talking about it” stage to actual delivery. And our local underwriting communities are responding with a willingness to provide coverage for developing technology.
This doesn’t mean challenges do not exist. This includes the increasing application of lithium batteries in vessels, with the conundrum being that these are generally installed in newer vessels which are addressing the years-long challenges of dealing with an aging vessel fleet. While new investment in the global fleet is being realised, there is still an estimated global fleet exceeding 12,000,000 vessels that will continue to age. Concerns include not only the increased need for inspections, but who will be available to undertake these inspections as the marine industry is subject to a shortage of knowledgeable professionals? The shortage of industry labour is also a consideration in the maintenance, repair and service of an aging global fleet.
The committee was pleased to learn of a cooperative effort between the government and the marine & transportation sector to install sensors on inland vessels to prevent allision with bridges. While not officially policy, the discussion & partnership to determine a solution at the public & private level is encouraging news. Adding to this, local representatives shared increasing interest in state sponsored investment in public infrastructure projects, particularly towards serving a growing yacht fleet.
Weather is always a concern, with most of the alarm rising from unexpected weather vs expected weather. Flooding occurred in areas where it is abnormal and the general insurance industry started the year with major fire losses; however, an active Atlantic Basin storm season was anticipated and did not materialise.
Even with challenges, IFY committee members reported a rather benign claims environment coupled with a generally sound & stable underwriting environment through 2024 into 2025, with a few exceptions at a regional and individual class level. Including the uncertainty of tariffs, the impact of inflation is better understood by the global underwriting community for these classes. We are recognising a heightened awareness of Illegal, unreported and unregulated fishing as well as rising to the occasion of assessing developing risks even with the challenges faced.
