LettersHong Kong has a chance to lead the world in marine underwriting
Readers discuss developments in shipping, and the implications for Taiwan of US actions in the Iran war
Hong Kong has a unique opportunity to become the natural home of next-generation marine insurance – if it chooses to seize it.
Today, almost all blue-water ship liability is still insured through a small group of traditional mutual protection and indemnity (P&I) clubs, many of them based in Europe. Their model was built for the age of steam. A dozen clubs collectively handle about 90 per cent of the world fleet’s liability claims, most of them low-severity operational incidents, leaving high-quality Asian operators effectively subsidising weaker fleets through a structure that prioritises claims processing over innovation, technology and competition.
Yet the geography of shipping has shifted. Asian shipowners now control the largest share of global tonnage and dominate the newbuilding order book. Nordic hull insurers have quietly overtaken London on ocean hull by using proactive claims handling and “increased value” covers to insure far more than basic hull. The question is where these trends should come together.