EMEA News
Skuld: Slide in Oil Prices Could Cause More Shipping Accidents, Claims
Norwegian marine insurer Skuld has warned that the ongoing slide in oil prices could lead to a rise in collisions due to an increase in shipping activity, reports ShippingWatch.
"We're unfortunately seeing a rise in collision claims," said incoming CEO Ståle Hansen, who said profits from the third quarter of 2014 had been lower than expected due to more medium-sized claims from accidents.
"The dramatic decline in the oil price could also lead to increased shipping activity, and on a general basis, increased activity could lead to a bigger risk of claims, so it'll be interesting to see what happens in the coming year."
He said that so far, Skuld has not received any major claims, but that medium-sized claims had grown to between $1-3 million.
"And then we're seeing a rise in costs when a ship first collides or is grounded," he said, adding that the added costs may lead to premium increases.
"Wreck removal costs more today than it has in the past, there are higher environmental requirements, and this means that the P&I coverage must contribute more than in the past."
Generally however, the insurer said that the company has experienced growth across all areas, in particular commercial protection and indemnity insurance.
Late last year, Skuld also issued a guidance for companies on how to avoid potential legal disputes that may arise from new sulfur regulations.
