Analysis of the shipping industry’s insurance claims record

• Main Author: Mohamad Shahril Zainuddin.
• Other Authors: School of Civil and Environmental Engineering
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/45403
• Institution: Nanyang Technological University

The objective of this research is to analyze the trend of marine insurance claims and identify and examine the major causes that contribute towards the never-ending patterns of marine insurance claims. The shipping industry plays an important role in the world with numerous stakeholders involved. However, with the inevitability of risk and unpredictability of the high seas, the shipping industry requires effective risk management through marine insurance coverage. With the trend of claims proving to be a strong obstacle, the shipping industry have had to absorb the increments in premiums which then navigates its way through the overall operating costs and jeopardizing its basic principles of low cost efficiencies. Contrasting the annual trends and views from industry professionals, there were noteworthy causes of marine insurance claims, i.e. human error, ship failure and piracy. Despite the shipping industry being a people system, human error accounts for a majority of the claims, thus proving to be a victim of its own failures. Piracy is fast catching onto the bandwagon with the news being overwhelmed by hijack cases and the inability of the international authorities to put a stop to it.