Aret Taşcıyan Reflects on 50 Years of Maritime Experience and Insights

Aret Taşcıyan recounted his 40 years of professional experience in his documentary work titled '40 Years of Sea and Risks,' published in 2016.

Ten years have passed since the publication of this memoir. As Aret Taşcıyan surpasses 50 years in the maritime sector, he shared his professional journey stemming from his childhood years.

In the recent history of insurance brokerage, which continues today as Lockton, there is also a partnership story that extends from Omni to Lockton Omni...

Founded in the early 1980s by Captain Emre Omur, Omni developed under the management of his sons Korkut Omur and Oğuz Omur after Captain Emre Omur's passing, and merged forces with Aret Taşcıyan towards the end of the 1990s to continue providing more comprehensive insurance services to the Turkish maritime sector, becoming a brokerage brand capable of producing effective solutions with customer and insurer relationships while always maintaining its flexibility.

By 2018, the American insurance broker Lockton, as part of its growth initiative in the maritime sector following its acquisition of the Norwegian brokerage Edge Group and the Italian PL Ferrari in 2017, partially acquired Omni Insurance, a leading broker in Marine Insurance, fully in 2022, which is managed by Korkut Omur and Aret Taşcıyan based in Istanbul.

Lockton is an independent family company responsible to itself and its clients. When it comes to marine insurance, it encompasses types such as P&I, Hull & Machinery, War Risks, Kidnap, Charterer’s Liability, Loss of Hire, Shipbuilding risks, Shipyard, and Port financial liabilities.

Lockton Overseas Ltd., which has subsidiaries in many countries across significant continents including America, England, Europe, and the Far East, has 11 offices in England, including London. The activities of the Lockton Overseas group are not limited to brokerage services in every conceivable insurance branch; it also includes company merger consultancy, pension program management, actuarial services, risk management programs aimed at developing sectors such as chemicals, pharmaceuticals, health, construction, real estate, telecommunications, and hosts a special organization called Lockton Charity to support organizations fighting against Alzheimer’s, cancer, and brain tumors.

Aret Taşcıyan’s life story

Aret Taşcıyan shared his life story as follows: 'Our home was at Moda Caddesi No 180, Usakligil Apartment. I attended primary school at Aramyan Uncuyan School. The first Armenian school in Kadıköy was opened on Muvakkithane Street, where Baylan Pastry Shop is located today. Later, in 1836, a new school was established next to the Surp Asdvadzadzin Church, which is now called Surp Takavor. When the school building was damaged in the fire of 1855 along with the Surp Takavor Church, the masonry church and two schools built on the same site were opened in 1858. As for my school; with the increase in student enrollment, these schools could not meet the demand, so a plot was purchased in Mühürdar, and the school built there started education in 1875 under the name 'Aramyan.'

During the years of World War I, the buildings of Aramyan and Uncuyan schools were used as a military hospital and shelter for refugees, and after the war, they served as an orphanage for a while. Later, an apartment building was constructed on the site of the Uncuyan School building to generate income for the school.

After this, the school began to provide education under the name Aramyan Uncuyan, in the building of Aramyan School. I received my primary and secondary education at this school and later, in 1967, I won the entrance exams for Robert Academy and started there as a boarding scholarship student (now known as Robert College). I graduated from Middle East Technical University in 1975 and began working in January 1976 at J.W. Whittall & Co. Ltd (now Vitsan A.Ş.), specializing in Marine Insurance, as a correspondent for P&I Clubs and a representative for Lloyd’s.

Upon requests from the Turkish maritime community, I shifted to insurance brokerage within the same company in 1984.

I am also honored to be among the first members of the Assembly of the Chamber of Shipping.

I represented Turkey at the International Chamber of Shipping - ICC for two years. Between 1988 and 1991, I taught Marine Insurance courses in the Maritime Management Master’s program at Istanbul University’s Faculty of Business.

In 1991, I received an offer to establish the Marine Insurance department of a firm that was engaged in brokerage in non-maritime fields.

Thus, I moved to the USA with a three-year contract. Later, while managing the New York branch of a British brokerage firm, we merged our forces with OMNI in 1996.

J.W. Whittall & Co. Ltd., which holds significant importance in my professional life, was located at the address of Karaköy Kınacıyan Han.

As stated in the company brochure, its phone numbers were: Pera 122,188,189 and its telegraph address was: Whittall, İstamboul. It served as a merchant, banker, maritime, and insurance agent under the identity of Lloyd’s Agents.

At the same time, it conducted mining research and exported chrome ore. The 'London' & Provincial Marine & General Insurance Company; The 'MOSS' Steamship Co. Ltd., Liverpool; The Royal Exchange Assurance Corporation, London; Leslie & Gowin (for underwriting at Lloyd’s) London; London Salvage Association, London; The Comité d’Assureurs, Antwerp; The Phoenix Assurance Co. Ltd. P&O Shipping Lines, Rhone Poulenc chemical industry, France, were its general agents in London.

There were grain warehouses in Haydarpaşa. It was an importer of grain, seeds, opium, mohair, leather, sheep pelts, all kinds of seeds, hemp, etc.

Aret Taşcıyan’s story with Vitsan began in childhood with the Whittall Family, who were neighbors in Moda.

Roland James Whittall, the son of James Frederic Whittall, suggested that he join his company, and he continued his first experiences in marine insurance with Vitsan.

James William Whittall, insurance company and reinsurance brokerage

Sir James William Whittall was one of the most rooted and pioneering figures in the history of insurance and maritime trade in Turkey. A member of the famous Levantine Whittall family that operated in the Ottoman Empire in the 19th century, Sir James William Whittall played a historic role in the institutionalization of modern insurance, maritime agency, and damage compensation fields in Turkey through the initiatives he established in Istanbul in 1873.

Founded by Sir James William Whittall in 1873 in Istanbul, J.W. Whittall & Co. was a multifaceted trade and shipping agency company that also acted as an agent and broker for international marine and fire insurance companies, establishing strong ties with the London market (such as Lloyd's), one of the largest reinsurance centers of its time.

This initiative by James William Whittall in 1873 forms the historical roots of Vitsan Mümessillik ve Müşavirlik A.Ş., one of Turkey's oldest insurance service and damage settlement organizations today.

In the last century of the Ottoman Empire, the concepts of insurance brokerage and reinsurance were conducted differently from today’s modern legal framework; they involved insuring commercial ships and their cargoes (elementary/marine insurances) and distributing these large risks to major reinsurers abroad (especially in England).

James William Whittall and his partners served as a true bridge of reinsurance and insurance between global markets and Ottoman trade during these risk transfer processes.

Under the leadership of Sir James William Whittall, J.W. Whittall & Co. engaged in ship and fire insurance agency, maritime trade, and coal brokerage, and is considered a sectoral legacy as one of the first established and institutional insurance/general agency initiatives in Turkey.

With the joining of Osman Yucesan in 1969, the company took the name Vitsan Mümesillik ve Ticaret A.S., continuing the legacy of J.W. Whittall & Co., providing insurance damage settlement, research, Lloyd's Average Adjusting, P&I Club, and maritime accident management services with a history of over 150 years in Turkey and surrounding countries.

Vitsan A.S. continues to operate today due to the decision of Roland James Whittall to permanently return to England at the end of the 1970s, Osman Yücesan’s departure from the company to pursue his own path, and Ilkay Bilgişin’s takeover of the company, while still fulfilling its role as a Club correspondent and Lloyd’s representative.

While narrating his life and professional story, Aret Taşcıyan continued: 'When Roland James Whittall decided to move to England to be with his daughter, he sold the company to İlkay Bilgişin, who continued the same insurance brokerage under the name Vitsan, strengthening it further. I remember my memories at Vitsan as a very valuable experience.'

In recent years, I migrated to New Jersey to continue my professional work in the USA. After maintaining my professional ties in the USA, I returned to Istanbul a few years later. However, my home is in New Jersey, USA, but I also have a house in Kadıköy Moda. Thus, I continue my work half the year in the USA and the other half in Istanbul.

Historical Evolution of Marine Risks and P&I Insurance In my published sector analyses and articles, I evaluate the global development of marine risks from the following historical and technical perspectives; In the concept of Total Loss Trends: 'Thanks to international regulations, evolving ship designs, and tightening risk management, the number of maritime accidents resulting in total loss has significantly decreased worldwide.'

For example, while the annual average of total losses in the last 10 years was 88, this number dropped to 49 in 2020.

In the concept of Regional Intensities: 'Although damages worldwide are under control, regions such as China, Indonesia, the Philippines, the Eastern Mediterranean, and the Black Sea, where old ships are operated and port traffic is intense, host 50% of total losses.'

Dry Cargo Risks: Despite the general downward trend, the increase in total losses of dry cargo ships in global maritime trade is a dynamic risk factor that needs to be carefully monitored among today’s marine risks.

The Role of P&I Insurance: P&I clubs, which are mandatory for ships and secure shipowners' massive liabilities towards third parties, the environment (oil pollution, etc.), and cargo, are the cornerstone of international navigation safety today.

My evaluations regarding current maritime events are as follows: The London marine insurance market has expanded the area assessed as high risk due to increasing attack risks on commercial vessels in the Black Sea.

According to the new assessment published by the Joint War Committee (JWC), the high-risk notification, which was previously predominantly applied to the coastal waters of Russia and Ukraine, has now been expanded to cover almost the entire Black Sea and even excluded inland waters from coverage. This decision was, of course, made following the recent increase in attacks on commercial vessels in the context of the Russia-Ukraine war.

The Black Sea stands out as an important route in global maritime trade for the transportation of grain, crude oil, and refined petroleum products. While costs are increasing in the marine insurance market, especially regarding war risk coverages, additional premium applications are naturally coming to the fore for most voyages to these regions, and war risk premiums are rising.

The assessments of insurers within the Lloyd’s Market Association (LMA) and the risk evaluations of the 'Joint War Committee' play a crucial role in the formation of war insurance additional premiums. Indeed, 'increasing security risks in the Black Sea affect shipowners' route planning, insurance costs, and operational decisions.'

With the increase in attacks in the region, maritime companies are trying to evaluate ship safety, crew risk, and insurance conditions more comprehensively, while they are also waiting for the government to take measures against the gap behind the attacks on ships belonging to Turkish shipowners. The most significant detail of the new regulation for Turkey is that it creates an exception regarding territorial waters, as from September 17, 2026, Turkey, Bulgaria, Romania, and Georgia will be outside the expanded war risk area. I can suggest the following to young people who have chosen maritime as a profession: Above all, one should strive to be a good mariner.

Maritime is not learned in books or offices. The discipline and customs of being a mariner are learned by living closely with the sea.

Instead of looking for a job in any office right after graduation, take a position at sea. Educate yourself as a mariner by first learning your profession at sea.

To be a successful captain or chief engineer, you must first experience the conditions of maritime life by being a good mariner.

One topic I particularly want to emphasize is the Cabotage Law. When the capitulations were abolished on July 24, 1923, the TBMM enacted the law numbered 815 on April 19, 1926, to implement the cabotage right, titled 'The Law on Maritime Transport and Execution of Art and Trade Including Ports and Territorial Waters in Turkey.'

This law, which came into effect on July 1, 1926, granted the right to operate ships and provide all kinds of maritime services only to Turkish citizens and Turkish-flagged vessels in our territorial waters and between our ports.

Since July 1, 1935, it has been celebrated as a holiday. The declaration of the Cabotage Law by our Great Leader Mustafa Kemal Atatürk and later gifting the same day as a holiday to the Turkish Nation is a clear indication of the importance he placed on maritime under the difficult conditions of that day.

If we evaluate the subject under current conditions, Turkish cabotage does not sufficiently protect the rights of our ships flying the national flag. In this regard, for a ship to fly the Turkish flag, it must be registered in the Turkish Ship Registry, have all or the majority of its shares owned by Turkish citizens, and be affiliated with a Turkish port.

Ships that do not comply with these rules are considered foreign-flagged vessels and cannot benefit from cabotage rights.

I would like to illustrate my opinion that Turkish cabotage is insufficient with an example: The cabotage law (Jones Act) enacted in the USA in 1920 is much more restrictive and protective than our Cabotage Law.

In our case, it is sufficient for a ship to carry the Turkish flag to benefit from cabotage rights. In other words, you can benefit a ship built in China by flying the Turkish flag and even equipping that ship with a certain proportion of foreign personnel.

In contrast, in the USA, for a ship to benefit from cabotage rights, it must first be built in the USA, be manned by US citizen crew, and its owners and operators must be US citizens.

In other words, simply flying the US flag is not enough.

Considering the decisions and measures taken by the Trump administration in the field of maritime protectionism, it reveals the fact that we need to make more progress in protectionism. This situation is valid not only for maritime but also for air, land, and rail transport.'

Source: SeaNews Türkiye