Published May 2023

A full round up of the issues currently being worked on by the Policy Forum.

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Published May 2023

Autonomous shipping/transport is gaining traction within the industry with the possibility of driverless trucks and vessels becoming a reality in the near future. Insurers need to address the various legal and liability issues that this poses as well as the risks related to new technologies and the internet of things. 

IUMI’s position

For autonomous/unmanned transports to become insurable the use of autonomous systems must rely on proper industry standards, certification and regulatory regimes. IUMI is monitoring industry and government-run projects. IUMI is also encouraging classification societies to take an active role in the technical and operational risk aspects of autonomous vessels and encouraging the development of industry standards.

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Published May 2023

A growing number of insurers take environmental, social and governance (ESG) factors into consideration during their decision-making processes. Investors, regulators, and society at large are placing increasing focus on sustainability within corporations. This section of the Policy Agenda outlines ESG initiatives with (marine) insurance relevance as well as specific issues of particular importance and directly linked to the business of marine insurers.

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Published May 2023

Machinery damage is the most frequent cause of loss in marine insurance. 40% of hull claims, by number, are due to this cause and they comprise 30% of costs. This is likely to increase with the introduction of low-sulphur fuels.

Cat fines are small particles of metal deliberately introduced to fuel oil to ‘crack’ the fuel and, unless removed, will cause serious damage to a ship’s engine and machinery. Cat fines are the most typical and well-known dominant cause of machinery damage and their impact is likely to increase with the wider adoption of low-sulphur fuels.  

IUMI’s position

IUMI is increasing awareness of this issue, monitoring and supporting developments and encouraging the implementation of new IACS recommendations for petroleum fuel treatment systems for marine diesel engines.

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Published May 2023

The ability to apply limitation is seen as an essential quid pro quo for shipowners in agreeing strict liability under the IMO conventions. Any weakening of this or uncertainty over when limits can be overridden has significant implications for shipowners and their insurers. Recognising this, the IMO's Legal Committee agreed to develop a unified interpretation (UI) to provide increased clarity and a common understanding on the ‘virtually unbreakable’ nature of the test to break limits. IUMI is involved in this work and supports the development of a UI.

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Published May 2023

More than one third of all fires on board vessels start in the engine room. Leaking oil pipes or equipment placed very close to a potential ignition source have been identified as the cause of several of such engine room fires. While the risk of fires from high pressure systems has decreased with the implementation of new design rules for the fuel pipes in 2003, the low pressure pipes/systems remain a significant risk.

IUMI Position

IUMI will engage in discussions with IACS on how to prevent and mitigate fire risks due to leakage from low pressure fuel systems with a view to potentially changing SOLAS regulations.

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Published May 2023

Container vessels are rapidly increasing in size, and with fires onboard and misdeclaration of cargo being two of the worst hazards in the shipping industry, insurers are highlighting several issues related to the safety of these ships.

IUMI’s position

IUMI supports measures that improve the monitoring of containers and their contents, including supporting internationally harmonized legislation and national regulations based on the Code of Practice for Packing of Cargo Transport Units (CTU) Code. IUMI continues to monitor and support measures to ensure the structural safety of large container ships and assessing with other stakeholders the need for further action on the installation of necessary firefighting measures.

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Published May 2023

Marine underwriters have witnessed that the frequency of fires in the car/roro segment is currently at a level twice the frequency of fires on most other vessel types.

Cargo fires are the most frequent type of fires onboard these vessels, which could be related to the fire risk of cars in general, as well as challenges with detecting, locating and extinguishing fires on these vessels.

IUMI’s position

IUMI supports the Interferry RoRo Deck Fire Safety Operational Best Practice Guidance and the ongoing work at the IMO to improve safety of roro vessels and car carriers.

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Published May 2023

The International Maritime Bureau (IBM) reported 180 piracy and armed robbery incidents worldwide in 2017. The Gulf of Guinea, Gulf of Aden and the Indian Ocean are areas of serious concern for marine insurers.

IUMI’s position

IUMI will continue to monitor and inform the IUMI membership of developments. A strong supporter of the Best Management Practice (BMP) 5 guidelines, BIMCO and ICS guidelines, IUMI also supports the implementation of ISO PAS 28007.

Overall it is vital for owners and insurers to remain vigilant in the Indian Ocean and governments to support counter-piracy operations through naval task forces and other means of support.

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Published May 2023

International sanctions continue to be used by countries to encourage other nations to conform to international agreements, particularly trade. The current targeting of financial services has demonstrated the necessity for marine insurers to keep up-to-date with new sanction regimes and how to comply with them.

IUMI’s position

IUMI will continue to offer guidance on where information can be found from the key sanction regimes and recommends proper due diligence is taken by marine insurers.

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