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Yearly study by Allianz lists fresh barriers for global underwriters

By Bankole Orimisan
24 December 2018   |   4:05 am
The yearly review by Allianz, which analyses reported shipping losses over 100 Gross Tons (GT), has revealed that there were...

The yearly review by Allianz, which analyses reported shipping losses over 100 Gross Tons (GT), has revealed that there were 94 total losses reported around the shipping world in 2017.

Bad weather, such as typhoons in Asia and hurricanes in the United States, contributed to the loss of more than 20 vessels.

Insurance claims have been relatively benign, reflecting improved ship design and the positive effects of risk management policy and safety regulation over time. However, as the use of new technologies on board vessels grows, we expect to see changes in the maritime loss environment in future.

The number of more technical claims will grow ñ such as cyber incidents or technological defects ñ in addition to traditional losses, such as collisions or groundings, the Global Product Leader Hull and Marine Liabilities, Allianz, Baptiste Ossena, said.

Analysis shows Fridays as the most dangerous day at sea, as 175 losses of 1,129 total losses reported have occurred on this day over the past decade. Three ships were lost on Friday 13th in 2012, including Costa Concordia, the largest-ever marine insurance loss.

The unluckiest ship of the past year is a passenger ferry operating in the East Mediterranean and Black Sea region, involved in seven accidents in 12 months.

Human error continues to be a major driver of incidents. Inadequate shore-side support and commercial pressures have an important role to play in maritime safety and risk exposure. Tight schedules can have a detrimental impact on safety culture and decision-making, the Global Head of Marine Risk Consulting, Allianz Global Corporate and Specialty (AGCS), Captain Rahul Khanna, said.

It is estimated that 75% to 96% of shipping accidents involve human error. It is also behind 75% of 15,000 marine liability insurance industry claims analysed by AGCS ñ costing $1.6 billion.

The Allianz Group, headquartered in Munich, Germany, is one of the worldís leading insurers and asset managers with more than 88 million retail and corporate customers.

Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance.

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