The 2020 Low Sulphur Limit – Potential Consequences to Marine Insurers
Machinery damage is the most frequent cause of loss in marine insurance. 40% of hull claims, by number, are due to this cause and they comprise 30% of costs. This is likely to increase with the introduction of low-sulphur fuels. The upcoming 2020 emissions control limits involve a significant reduction in the permissible SOx emissions from ships from 3.5% to 0.5% globally.
In this webinar George Margetis, Managing Director at Margetis Maritime Consulting, discusses the various problems that are presently anticipated with the new blends that are being developed as a result of the new regulations. George considers the consequences to the marine insurance market, including the high risk of combustion related damages and claims in machineries when using these new blends of fuels.
The Q&A is moderated by Neil Roberts, Head of Marine Underwriting at the Lloyd’s Market Association (LMA).