The possibility of large losses due to the misdeclaration of cargo remains an issue, with this being a leading cause of fire onboard vessels. The blockage of the Suez Canal by the grounding of the Ever Given for nearly a week in 2020, and the resulting loss to the market, emphasized the impact of the size of new vessels and the accumulation of goods. Challenges to the supply chain persisted long after the obstruction was removed, highlighting the effect a single incident can have on the delicately balanced ‘just in time’ supply model in which the industry operates. Working groups in shipping and insurance continue to seek solutions to these issues.
An increasing focus on ESG has shifted the appetite of much of the London market away from fossil fuels such as coal; meanwhile, the push for carbon-neutral shipping continues. As a result, we have seen more companies opting to use LNG-fueled vessels or hydrofoils to reduce emissions and offer a carbon-neutral option to their clients.
Coverage restrictions for cyber and communicable diseases continue, as does the move towards higher technical standards in underwriting rather than emphasizing top-line growth. Barents Re continues to employ a rigorous approach to technical underwriting to maintain profitability while remaining competitive.