5 minute read
Innovation
Britt Pickering (left) and Alex McCooke (below) explain how Shipowners’ Club has developed new cover for the fast-growing Marine Autonomous Surface Ships (MASS) market and Offshore Wind as the historic P&I sector rises to the challenges and opportunities presented by the ongoing technological revolution
The Shipowners’ Club has come a long way since launch in 1855. The Club started life modestly with 221 vessels at 58,228 GT; this figure has grown substantiallyin the last 167 years to 33,986 vessels and 27.9 million GT. So much has changed over this period, but, the Club has retained its core principles of mutuality: that of sharing risk, insurance at cost and control by its members. Another thing that has not changed is the Club’s willingness to embrace change and support members as technology transforms their industries or opens up new industries. No Club can survive without being able to react to the changing demands and needs of members.
For this reason, in the last decade the Club has developed a range of bespoke policies to tailor or add to its cover for specific members’ needs. Fishing boats, yachts and dive boats can all benefit from cover adapted specifically for their unique requirements, whilst vessels engaged in offshore work have a choice of multiple packages of cover, catering for the full range of contractual and operational situations required.
AUTONOMOUS CRAFT
One of the most recent additions Shipowners’ suite of specialist covers is its marine autonomous vessel liability Insurance Policy. Marine autonomous surface ships (MASS) form a small but rapidly growing vessel sector in the marine insurance market, currently calculated to be worth more than US$1.5bn. This is quite remarkable considering the relative infancy of the systems technology and the operational constraints under which many of these vessels operate.
The relative value of this sector is also surprising when you consider that it is developing in a small and specialised niche and is therefore moving, at least for now, against the traditional marine market trend of ever-increasing vessel size. The sector presents novel challenges for insurers when assessing risk. For MASS there is an almost complete lack of historical claims data to inform underwriters in relation to the risk both in terms of frequency and quantum. Further, when underwriting a traditional risk considerable comfort is gained from a vessel’s classification with a class society. Although it is very encouraging to see class societies embracing MASS with specific guidance, it does not always remain appropriate to class these small, specialised and regionally trading vessels.
Fortunately, the Maritime Autonomous Surface Ships – UK Code of Practice (first introduced in 2017 and now in its 4th iteration has provided guidance focused on design, construction, and operation of MASS as well as skills, training and vessel registration. In addition, even though its primary focus is on smaller
The future is still so much bigger than the past
vessels, we also refer to the MCA Workboat code for general guidance. It is particularly rewarding to note that this latter code will shortly encompass survey examination and certification specific to MASS.
RISK COMPLEXITY
The diversity of vessels within this new sector certainly adds to the complexity of risk assessment. Assessing the risks and providing cover for a 3 GT MASS operating on inland waterways collecting plastic pollutants is very different when compared with a 21 GT size MASS collecting seismic data and conducting subsurface imaging in offshore environments or indeed a 5,000 tonne 300 TEU electric powered containership with autonomous capability.
It is therefore vital to fully engage with members in this sector to understand the uniqueness of the technology, the vessels and their operations. Through this approach, we can continue to learn and more importantly support our members by providing the exact cover they need. While the MASS sector may be moving against the traditional maritime trend towards larger vessels, it is already completely aligned with the green agenda and shift towards alternative fuel sources. This will inevitably accelerate the pace of their development as governments commit to lowering carbon emissions globally.
OFFSHORE WIND
Another area in which the Club is proud to experience rapid growth is the offshore wind industry. Shipowners’ has been supporting members working on wind farm construction and servicing since European windfarms were in their nascency in the 1990s.
Today the Club covers the full suite of vessels working in the sector, from survey vessels to specially designed installation vessels laying monopile foundations, the vessels carrying project cargo to site and cable layers conducting installation, repair and maintenance.
Whether it’s an accommodation vessel providing walkto-work facilities, or a guard vessel engaged in daily support tasks, the Club’s extensive experience in dealing with their contractual and practical issues allows it to step in when needed to advise and assist its members.
Vessels working on commissioning, building and providing services to windfarms operate under special environmental, statutory and legal requirements, and face unique risks.
Their design and contracts are specially adapted for these purposes and the growth in the market has allowed them to become increasingly so. In the early 1990s the world could only boast a handful of windfarms in Denmark. Thirty years later, there are more than 200 operating offshore wind energy projects globally, with China, the Netherlands, UK, Belgium and Germany leading the market.
As we look forward to the remainder of 2022 and beyond, the Club is convinced that industries like offshore wind and autonomous craft will go from strength to strength.
The lower environmental footprints of solar and greener vessels, and the use of renewables both by the vessels and their customers, are perfectly aligned with the initiatives being driven at state and corporate levels across the world.
This was demonstrated this year by the applause these and similar industries received at the UN Climate Change Conference (COP 26), where many advocated these technology-driven approaches as a means of reaching climate targets globally.
Despite the rapid pace of change seen and accommodated for in the last few decades, there is no doubt that technology and operational practices will continue to evolve apace for the Club’s members in various sectors.
The inventor of the World Wide Web, Tim Berners-Lee, said in 2009, when asked about the growth of the internet – “the future is still so much bigger than the past”. As we talk with members about the opportunities and threats presented by developing technologies such as smart ships, artificial intelligence, augmented reality, and blockchain, our first thought will continue to be about what we can do to lend support.
