IUMI renews focus on ESG issues to help deliver for clients

The International Union of Marine Insurance (IUMI) is refocusing efforts on environmental, sustainability and governance (ESG) issues to ensure the marine insurance sector and its clients are better prepared to deal with their impact.

Speaking at IUMI’s online spring meeting, IUMI president Richard Turner said ESG issues are impacting all forms of business, including marine insurance, which is set to be affected in three ways.

He said climate change and the related rise in sea levels will impact the frequency and severity of claims.

In addition, the transport assets and cargoes IUMI members insure will evolve significantly, and that is already being seen as the marine industry adopts low-sulphur fuels, he continued.

The third area is the sustainability of marine insurers’ clients and the industries in which they operate, said Mr Turner.

“It is becoming increasingly clear that some industries will have the opportunity to grow and develop while others will shrink as the world moves to a more sustainable footing. As an industry, we need to recognise these changes and adapt,” said IUMI’s president.

IUMI is raising awareness of these issues to ensure the marine insurance sector is better prepared to respond adequately.

IUMI said it is “actively lobbying” to raise relevant issues, monitor response and “agitate for change”. Many issues already on IUMI’s policy agenda have a sustainability impact, including arctic sailing and low-sulphur fuels, it explained.

“Building on a comprehensive member survey conducted more than a year ago, we are continuing our advocacy activity on a number of key issues. This has led to the formation of a sub-committee of IUMI’s executive committee to focus specifically on ESG issues. In addition, we are proud to be a supporting institution of the UN’s Principles for Sustainable Insurance,” said Mr Turner.

ESG issues will be a key focus at IUMI’s 2021 annual conference, which is being held virtually from Seoul, Korea on 2-15 September. Its theme is ‘Pathways to a sustainable, resilient and innovative future’.

“This year’s common theme is both optimistic and forward-looking, and we aim to cover the opportunities and risks that marine insurance is likely to face in a continuing- and post-pandemic world. We will discuss the various options and pathways that marine insurance should pursue to ensure sustainability, both in terms of ESG issues but also to maintain marine underwriting as a healthy and resilient activity,” said Mr Turner.

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