Companies in the marine sector now need to look afresh at the emerging risks they are facing says Marcus Baker, Chairman, Marsh Global Marine Practice.
The current turbulent and unprecedented environment in the marine industry has spawned a period of continuous change. Emerging trends in disruptive technology, human capital, and market demand have forced the industry to re-examine some of the basic assumptions that have driven traditional risk conventions.
Marsh’s report, The Changing Tide of Risk: Expert Perspectives on the Marine Industry, consists of a collection of articles examining the risks and opportunities facing the marine sector.
As emerging risks come to the fore, the report warns that it is not only ship operators that face challenges but also those along the supply chain. The report makes specific mention of the impact cyber risk could have on the marine industry as it remains a “looming concern” for both the marine and insurance industries.
The report also addresses the impact of autonomous technology in shipping and states, “If it is tested and found viable, the support of regulators and the insurance industry will be essential to the deployment of these ships in everyday commercial activities”.
The marine industry is facing a crucial stage in its history. Economic headwinds have combined with new demands and technological developments in recent years to create a period of uncertainty and continuous change, meaning companies must now re-examine traditional risk assumptions.
— Marsh (@MarshGlobal) June 1, 2017
The report examines the challenges, risks, and opportunities facing the sector as it grapples with a strained economic environment, talent shortages, new regulation, and the changes associated with new and emerging technologies.
“By general agreement, marine insurance rates are currently at levels that cannot be sustained over a long period, yet they show little sign of increasing,” the report states.
“Although many questions remain, what does appear certain is that cyber issues will stay at the forefront of the industry for the foreseeable future,” the report notes.
Each article provides a critical insight into sector risks as well as the opportunities available to those companies that can best position themselves to take advantage of them. The topics examined include: