JOY ORLEK CARGO RISK management is a great tool for reducing a variety of losses but there are some that you can do nothing about – and the MSC Napoli is a clear example. “With that type of exposure there needs to be a solid premium base,” chairman of the Association of Marine Underwriters of SA, Dave Keeling, told FTW. “Although we’re a long way from putting numbers on the extent of the loss, it’s safe to say that it will be a major loss for the market – and one in which almost everyone is involved. “We would hope to see premiums rise as a result, but whether this will happen is difficult to say. We anticipate that reinsurance costs will go up which will increase insurers’ costs – and those costs should be passed on to those insured in some shape or form.” Another hot topic in the local market place is hijackings, and despite statistical information fed to us through the media that these are down by 2%, this is not the experience of the insurance industry, says Keeling. “Based on our statistics, over the past six months the number of hijackings has increased dramatically over the previous six month period, and it’s not because people are more aware of crime – it’s because it’s more prevalent.”
