As the maritime industry becomes increasingly complex, associated risks are harder to control. Having the correct information to enable careful risk selection is essential, and when taking on risks, it is crucial to make every effort to mitigate them as far as possible, argues Stephanie Sjöblad, Loss Prevention Executive at Alandia.
his is done through effective loss prevention. We need to fully understand the risks to be able to properly mitigate them, so insurers must adapt to evolving challenges and grow their knowledge. The best-case scenario for stakeholders is that the incident doesn’t happen; therefore, loss prevention concerns and benefits everyone.
As incidents seldom occur due to a single mistake/event onboard, it is important to consider the physical property (the vessel and the cargo) and the operational framework surrounding it when formulating loss prevention efforts.
Multiple contributing factors are usually connected to a marine casualty/damage, including how the vessel is crewed and maintained, and how the shoreside organisation operates. Inadequate knowledge, lack of foresight, and deviating from rules/procedures are common issues. Effective loss prevention efforts can provide a firm foundation for improved safety, reliability, and performance, making it a worthwhile commitment from the insurer and the assured’s perspective.
The key to successful loss prevention is collaboration and commitment. Close internal cooperation between critical functions, such as underwriting, claims, and internal technical advisory services, ensures a true and holistic view of the risk, the exposure, and the customer.
Externally, collaboration with the customer depends on good client relationships. Loss prevention has the unique opportunity to work with the customer not only during renewals and claims, but to continuously support safety performance and strengthen transparency and trust.
Cross-industry collaboration is the last piece of the puzzle. To advance; we must share knowledge and experience. We can learn a lot from other high-risk industries such as aviation, rail, and property/construction.
There needs to be a joint effort to raise awareness of potential risks and develop industry guidance. We must move forward together to attain the results we want – as the saying by Ken Blanchard goes, “None of us is as smart as all of us”. Proactive loss prevention is intrinsic to the bigger picture and should be at the heart of all skilful marine insurance business.
The above article has been initially published in IUMI’s website and is reproduced here with author’s kind permission.
The views presented are only those of the author and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.