The Athens Convention, Maritime Labour Convention (MLC), and more recently COVID-19 concerns have accelerated regulatory scrutiny. Regulatory pressures, alongside rapid technological evolution and increased demand, are creating new challenges.
Unlike cargo, the transport of passengers creates unique risks and exposures. Aside from operational losses and damage to valuable fixtures and fittings, accidents and catastrophic mechanical failures with passenger vessels can trigger lawsuits and expensive claims.
Although Protection & Indemnity (P&I), Hull and Machinery coverage for physical damage to the ship and working parts, increased value and war instances, loss of earnings, and business interruption are at the core of cruise and passenger vessels’ insurance program, rapidly changing demands and pressures are changing risk exposures. Ensuring that risk management strategies respond to changing demands, pressures and risks, is critical.
When designing a robust risk management strategy, cruise and passenger vessel owners and operators benefit from:
A specialist team
Specialist consulting, broking and advisory teams with extensive industry experience are able to harness industry knowledge and tailor insights to cruise owners’ and operators’ needs.
A network of local experts and regional hubs enables vessel owners and operators to access global markets and solutions, and design bespoke risk management strategies.
Carrier relationships and premium volume with cruise-friendly Protection & Indemnity (P&I) clubs and Hull & Machinery (H&M) underwriters provide scope and leverage to design insurance programmes that are tailored to specific needs and objectives.
Specializing in liability coverage for passengers and crew on board - as well as off vessel - with a range of supplementary passenger and crew covers can support cruise and passenger vessels’ operating models in new ways. Increasingly, the security provided by coverage such as Crew PA is enabling shipowners to retain crew members by providing longer-term benefits.