IUMI President flags unknown consequences of onshoring

The President of the International Union of Marine Insurance,  Frédéric Denèfle, has warned of the growing dangers to the wider marine market from a “nationalistic approach”.

Delivering his end of year message to members, he said: 

“Marine risks and the general economic situation are largely exposed and can suffer from fragmentation directly caused by a nationalistic approach being taken by a growing number of states for the sake of strategic industrial advantage.”

“This is generating a large scale of onshoring or reshoring industrial production – and the consequences on marine insurance is still to be assessed.”

He added that what marine insurers can offer is not only about numbers and finances; and that skilled and diversified staff are able to understand this evolution and the vital importance of preparing for the future.

Commenting on this year’s IUMI Conference he added: “The evolution of ESG and in particular IMO’s recent decision to reduce shipping’s GHG emissions to assist with the fight against global warming was also considered in Edinburgh. Shipowners are having to reduce their consumption of fossil fuels to align with the new IMO 2050 policy. Whilst this shift is only beginning, marine insurers will need to ensure they understand the various technical solutions (which are backed by prominent charterers) and which will develop into all aspects of maritime logistics.”

“Unfortunately the Gaza-Israel war has revived a tragic situation and once more put pressure on marine insurance in relation to Middle East areas and the Gulf and Straits shipping routes. These are so important for maritime traffic; and as a strategic route to export oil into Asia and Europe.”

“The challenge for marine insurers is to work within this complex context where industrial and technical evolution has to be considered alongside a resurgence of war and an increasingly fragmented world.”

“Within this mixed situation, IUMI will support its members in the months to come and use the opportunity of the Berlin conference not only to celebrate our 150th anniversary but also to assist insurers adapt to this new and rough environment.”