Falvey Insurance Group’s Post

Spot rates and insurance costs are rising rapidly on all affected trades. However, rates on unrelated trades (eg Transatlantic or India to Australia) are also increasing as operational disruption and vessels being reallocated to fill schedule gaps ex-Asia squeezes available capacity. https://lnkd.in/eNhDkq3y

Risk rapport. When there is collegiality, mutuality and understanding between risks that are complementary opposites. Between rooms and travel plans. Between grocery shelves and dinner plans. Between valuable property and membership in risk pools sold as insurance policies. Between flights and terminals. Between undersea cables and cross-Atlantic trades. Looking at contracts and counterparty risks from a different perspective, to foster cooperation and to reduce unnecessary economic stress.

Climate and geopolitical risks pose significant risks to supply chain. And not just direct supplies but the entire value chain. Companies need to map the multiple tiers of their supply chain as well as layer on multiple risks to fully assess the resilience (or lack theteof) of their supply chain. And only then can a full #businessinterruption be truly meaningful.

Marine underwriters in Singapore are having to react quickly and dynamically to the escalating situation in the Red Sea. Hull insurers have already raised rates due to a rise in attacks and expanded targetted by Houthi militia on ships in the region. Cargo insurers, initially adopting a wait-and-see approach, are reaching the limits of this strategy following a US-led attack in Yemen last Friday and subsequent threats of retaliation. It is understood some cargo carriers are beginning to issue notices of cancellations (NOCs) of existing war risk cover, due to the increased risks. Premiums have soared from 0.1%-0.2% to as much as 0.7% of a ship's value. In response, shipping companies, especially smaller ones, face a tough decision: pay the increased insurance costs or reroute, potentially around the Cape of Good Hope, to avoid the high-risk area. More from Blake Evans-Pritchard, including expert insight from multiple industry sources who preferred not to be named due to the politically sensitive nature of the topic: https://lnkd.in/gQXPsHz2 (available to read today via a free trial).

By applying very low premium rate, any major loss may turns cargo insurance poftfolio from profit to loss...

While we think of insurance and reinsurance as the last stop in any crisis chain's financial repercussions, it is also the first point of departure for price increases across the economy, in the immediate timelines after a crisis / calamity. Quoted from linked article, in context of the Red Sea crisis: Insurance risk premiums for sailing through high risk areas are rising - from 0.07% of a ship's value in early December 2023, to 0.5% to 0.7% in recent days. https://lnkd.in/geTKJbzt

The global shipping sector is on the verge of significant disruptions, possibly exceeding the challenges witnessed during the COVID-19 pandemic. The increasing Houthi attacks in the Bab el-Mandab Strait have triggered a seismic shift in global shipping dynamics . From rising insurance premiums to the rerouting of vessels, the repercussions are felt across the industry. To learn more about the challenges and opportunities arising from this shift please follow this link as Nick Veldman, Ndumiso Vuyani Colvelle, Megan Canning and Matthew Van Maasdyk share more insights https://bit.ly/3wdZMOL #shipping #insurance #marineindustry

Bridge collapse in US to cost insurers up to ₹33,332 crore: Report https://shrts.in/9t3VQ -via inshorts #insurance #claims #property

There could be vast liabilities. Several P&I liabilities will be invoked. The port has suffered interruption. Port Package policies will be triggered. Policies covering interruption due to vessel impact could be triggered. Delay in Startup policies could be triggered. Public Liability policies will be triggered.