SALT’s marine insurance opportunities
SALT’s marine insurance opportunities | Insurance Business Australia
Marine
SALT’s marine insurance opportunities
“Many marine products are being restricted to online platforms”
“We have seen established insurers fail to commit adequate resources and train personnel,” said Andrew Black (pictured above). “Increasingly, many marine products are being restricted to online platforms.”
Black, head of marine for SALT Marine Risks Australia, suggested this failure has provided opportunities for his agency. SALT is a specialist marine managing general agent (MGA) and Lloyd’s coverholder. The firm works exclusively with Australian and New Zealand brokers and their clients.
Last month, the firm announced the hiring of a new senior underwriter for its head office in Sydney – Iain Sharples, formerly with Zurich Insurance. SALT, founded in 2015, now has a small team across Australia with senior underwriters in Sydney, Perth and Melbourne.
Online platforms versus bespoke solutions
“SALT is continuing to further build on the team of specialist marine underwriters and claims handlers and is dedicated to progressively expanding its presence and product offering across the region,” Black said.
His firm focuses on providing local, bespoke marine insurance solutions which, he says, helps set his agency apart from big insurers in the marine space. The online platforms that facilitate many of the marine focused insurance offerings from other insurers, he said, are handled by generalists rather than specialist marine underwriters and are unsuited, he suggested, to dealing with complex marine risks.
“Such platforms are unable to provide the bespoke solutions required to adequately cover more complex marine risks,” Black said. “This is not the SALT model, which is focused on technical expertise and genuine marine and transport experience.”
SALT’s coverage offerings currently focus on marine cargo, marine liabilities and commercial hulls.
“Shipping and transport of goods plays a vital role in so many businesses across our region, heightening the importance of marine insurance,” Black said.
Marine: Brokers need “experienced underwriters”
He emphasized the “critical” role of skilled underwriters in the marine space to facilitate a broker’s ability to deliver to clients.
“Unlike many other areas of insurance, marine insurance often calls for tailored insurance solutions,” Black said. “Critical in achieving this, is the ability for brokers to be able to directly engage with experienced underwriters with in-depth knowledge of the local shipping and transport industries.”
He said brokers that rely on placing marine risks in overseas markets are falling back on a “far from optimal solution for their clients” due to a lack of local knowledge and “local claims expertise.”
China relations: What marine impacts?
One wider issue for the marine industry at large is geopolitical tensions involving China. Black downplayed the current risks from an insurance and exports perspective.
“Whilst the perceived thawing of trade tensions between China and Australia will be welcomed by Australian exporters and the wider economy, this has limited impact on local marine insurers,” he said.
Black said insurance of these exports is generally done in China itself “and the resulting need to arrange marine cargo insurance rests with the Chinese importer.”
War insurance and marine
However, in terms of war risks – another area impacting the marine space – Black said Russia’s invasion of Ukraine has impacted the war insurance covers offered by marine insurers.
“The provision of ‘war’ cover remains integral in enabling vessel and cargo interests – including those who finance these – to continue to trade,” Black said.
However, he said, following the outbreak of a conflict the ongoing provision of war insurance becomes “increasingly problematic.” Black said few shipowners are willing to see their vessels proceed knowingly into a war zone.
He also said marine insurers can be reluctant to offer war covers “without a careful assessment of the possibility and likely future direction of any conflict.”
“The current situation in Ukraine, involving the entrapment of vessels in the Black Sea, coupled with the detainment of numerous leased aircraft in Russia, has impacted the global insurance market when it comes to providing cover for war risks,” Black said.
The complex and dangerous situation in the Black Sea prompted Turkey and the United Nations to broker a deal to export grain. According to Reuters, since the deal was agreed in July, more than 27.5 million tonnes of food have been exported by ship. The deal was renewed in March for two more months.
Are you an insurance broker in the marine industry? What do you see as your coverage challenges? Please tell us below
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
