Outgoing International Union of Marine Insurance (IUMI) president Richard Turner told underwriters at the organisation’s conference in Chicago that they will need to make far-reaching changes if they are to meet future challenges.

His parting warning shot came at the last IUMI conference he would host before he steps down and hands over the presidency.

Turner said marine insurers would be confronted by the fallout from war, the pandemic, economic protectionism and climate change in the years ahead.

He said that the impact of the pandemic is still playing out and will “still be unfolding for many years to come”.

The war in Ukraine has added to the global political uncertainty and responsibilities of underwriters, he pointed out.

The use of sanctions by governments is increasingly impacting the work of underwriters. He cited analysis showing that 35 countries are now the subject of sanctions by the US, European Union and UK governments.

“If anything, the geopolitical environment is even more uncertain,” he said.

The advance of digitalisation, which has been accelerated, is fundamentally changing the work of the underwriter as data and analysis play an increasing role in assessing and pricing risk and placing business.

“The concept of what an underwriter does will change,” Turner warned. “Can you imagine at an IUMI conference in 10 years if there are as many data analysts in the room as underwriters?”

Climate change is also affecting marine underwriters, both in terms of claims resulting from natural disasters related to global warming, and insuring new decarbonisation technologies.

He said the marine insurance industry can no longer afford not to engage with climate change and environmental, social and corporate governance issues.

Turner said IUMI would step up its strategic review to 2030 to help underwriters address the new challenges.

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He insisted underwriters need to adapt to the upcoming challenges.

“No organisation can stand still,” Turner said. “We cannot simply assume that the work we did in the last decade will be sufficient to see us through the next decade.

“The wider changes in the world make such an outcome unlikely. We will need to evolve if we are to stay relevant to the sector we represent.”