IUMI calls for loss prevention to underpin net-zero drive
The conference also heard severe weather has changed the risk landscape for carriers and operators
A comprehensive loss prevention programme must underpin efforts already underway to decarbonise the marine sector and wider society, IUMI delegates heard at its annual conference this week in Berlin.
Pascal Dubois, chair of the IUMI Loss Prevention Committee, said investment, innovation and political will to achieve climate change goals “would not be enough” without comprehensive action on loss prevention.
“I believe society has the potential to be overwhelmed by the challenges it faces unless we develop and implement loss prevention as a prerequisite to tackling climate change. Without loss prevention, the capital investment required will simply be too high and political will might wane as a result,” he warned.
The shipping industry is working to be carbon neutral by 2050, but Dubois said the risks need to be fully understood.
“Participants will want to de-risk their activities as much as they can and this means their insurers will need to provide suitable cover. It will only be through fully understanding these new risks and implementing broad loss prevention measures that shipping will be in a position to invest, innovate and make the required changes,” he explained.
Dubois told the audience that “loss prevention is fast becoming much more important than ever before” and will allow the sector to keep a step ahead in the transition.
Mike Brew, chair of the IUMI Cargo Committee, said both carriers and operators are more focused on loss prevention, but he warned of the growing threat from changes in global weather patterns.
Brew said companies and underwriters have become much more aware of accumulation of risk on single vessels or in ports.
“Multiple consignments will always gather in single locations and ever-larger vessels will always carry large high-value cargoes. But today, the market is much more aware of stocks and values and is cognisant of the potential risk. Our knowledge of the issue is so much better and so we can take steps to mitigate that particular risk,” he said.
An inland hull, fishing and yachts workshop heard that weather events are beginning to take their toll on the sector. Rick Salway, vice-chair of the IUMI Inland Hull, Fishing and Yachts Committee, agreed that severe weather is no longer confined to the Atlantic Basin or to specific times of the year, which is driving up claims. Aside from storms, other weather events are also becoming more prevalent, he said.
“Droughts and floods are more prevalent, which is creating navigation issues for vessels that might ground unintentionally, or fail to navigate a structure due to higher-than-normal water levels. Lightning strikes are also on the rise and this is particularly concerning for fibreglass vessels, which are highly susceptible to costly electronics damage. As a result, we’ve seen significant lightning deductibles become much more widespread recently,” Salway said.
