Tsakos Shipping London director Andreas Bisbas has criticised marine insurance underwriters for not working with owners and speaking out on possible IMO 2020 problems.
As the clock ticks down on IMO 2020 Bisbas told the International Union of Marine Insurance (IUMI) conference in Toronto that owners could still face problems procuring fuel and with safety issues related to the quality and compatibility of a new generation of low sulphur bunkers.
He said that marine underwriters could play an influential role in helping the shipping industry overcome some of the problems.
But until recently underwriters had remained silent on the issues, he said.
He reminded the conference that world trade relies on shipowners and underwriters working together. “Without the shipping companies, and you the insurers, nothing moves,” he said.
However, he said that underwriters tended to be too insular in their approach to issues like IMO 2020. “Underwriters look inwardly and talk among themselves, they should be looking outwardly,” he said.
“I’m surprised how quiet they have been until recently. I have not heard underwriters stepping up to be part of the solution to IMO 2020.”
Bisbas explained there were clear risks of machinery breakdown linked to contaminated or incompatible fuel which could lead to costly claims for owners and their underwriters.
He is concerned that underwriters may only respond when the claims start coming in, by possibly increasing deductibles to counter the losses.
“I urge IUMI to engage more with our demands. We need the engagement of all parties in the supply chain including underwriters,” he said.
However, QBE’s Rama Chandran, head of the IUMI’s Ocean Hull Committee, said he felt Bisbas’ comments were unfair. He said that underwriters had started to contact owners over their compliance strategy and offer advice.
IUMI’s policy forum head Helle Hammer said that IUMI had been working on the supply issue for “several years.” She said that IUMI is working closely with the IMO on safety issues and added that IUMI is happy to discuss the potential problems with shipowners. “We would invite them to come to us but it is not our job to tell shipowners how to operate vessels,” she said.
