TWO British marine insurers are reporting heavy losses and resulting insurance claims considered "extraordinary" by the industry, reports London's Tanker Operator.
"During the year, the London P&I Club was required to respond to 14 claims of more than US$1 million, two of which are expected to exceed the $9 million," said CEO Ian Gooch.
"This is extremely unusual. There has only been one other policy year in the past 10 in which the number of claims in excess of $1 million exceeded eight at expiry," he said.
Said North P&I Club chairman Prate Shrike: "The significant number of large claims in excess of $1 million was unexpected. However, this does happen from time to time and most International Group clubs have experienced similar volatility in recent years."
Mr Shrike pointed out that new legislation was contributing to the increasingly expensive claims environment.
"Government intervention and regulation has continued to have a significant impact on the shipping industry and during 2015 we have seen two further important pieces of maritime legislation come into effect," he said.
"In April, the Nairobi International Convention on the removal of wrecks 2007 entered into force, and in June, the liability limits were significantly increased. These conventions have the potential to lead to a major increase in the cost of claims," Mr Shrike said.
WORLD SHIPPING
20 July 2015 - 21:38
Marine insurers hit by mega claims, expect new regulations to cause more
TWO British marine insurers are reporting heavy losses and resulting insurance claims considered "extraordinary" by the industry, reports London's Tanker Operator.
WORLD SHIPPING
20 July 2015 - 21:38
Marine insurers hit by mega claims, expect new regulations to cause more
This news 5088 hits received.
These news may also interest you