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Asia: Cyber risk adds to the challenge of marine insurance

Source: Asia Insurance Review | Feb 2016

Aside from dealing with subdued rates, the risk landscape in marine insurance is rapidly changing with the industry an attractive target for cyber attacks – given that 90% of world trade is carried by the international shipping industry. 
 
   Should an attack or breach happen, there are both financial and operational risks involved that need to be considered. These include lost revenues from operation downtime, costs in terms of third party claims and liabilities, legal and defence costs, reputational damage and even potential lawsuits from shareholders. 
 
   And where insurance is concerned, traditional insurance models may not yet be an ideal fit for the dynamic cyber environment we are facing, as insurers are still assessing the various scope of such risks. 
 
   While from a legal standpoint, various jurisdictions will still determine the applicability of cyber law principles, and in cases where a breach happens when a ship sails to multiple destinations, there will be contention as to which law would apply. 
 
   These are just some of the key issues facing the maritime industry in the lead-up to the 1st Asia Pacific Maritime Insurance Conference (APMIC) organised in conjunction with the Asia Pacific Maritime 2016 in Singapore – taking place from 16-18 March 2016. 
 
   Marine insurers face rising frequency and severity of claims with the vessels getting bigger, while competition is keeping premiums down. Hence, there is an urgent need to find new and lasting solutions. Marine insurers need to find that niche to grow and prosper despite the odds.
 
   This two-day conference includes active panel discussions and expert presentations to discuss pressing issues relating to market development, legal and regulations, underwriting, claims, risk management as well as practical solutions in maritime trade. 
 
   For more information, visit www.asiainsurancereview.com/airapm
 
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