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A leader in marine insurance market
LLOYD'S of London, which has been conferred the Maritime Service Provider Award, is working to enhance the understanding of risk management and insurance in the maritime sector in collaboration with the marine and shipping associations in Singapore and the Maritime and Port Authority of Singapore and through its emerging risks research programme.
Kent Chaplin, Lloyd's Asia Pacific chief executive officer, says: "Lloyd's is delighted to be awarded the Maritime Service Provider of the year. As the founders of the marine insurance market 328 years ago, Lloyd's has a long and proud maritime heritage. Today, Lloyd's continues to lead the global insurance market when it comes to underwriting specialist maritime risks."
Lloyd's offers significant insurance protection to marine businesses across the Asia-Pacific region from its international underwriting hub here in Singapore. Marine is a foundation business for Lloyd's Asia with 19 out of 21 service companies underwriting a comprehensive range of marine risks. In 2015, Lloyd's Asia offered marine risk protection amounting to a sum insured of US$42.7 billion.
"A highlight for us in 2016 was the inaugural Lloyd's and Singapore Shipping Association (SSA) Open Day, at which 70 SSA members had the opportunity to learn more about marine liability, marine hull, and kidnap and ransom risk issues, as well as about Lloyd's unique history and structure," says Mr Chaplin.
Lloyd's also promotes the development of the marine insurance sector through its weekly Marine Open Trading Hours, where insurance brokers are able to meet underwriters on the Lloyd's trading floor to discuss marine risks face to face.
Says Mr Chaplin: "Singapore has developed into a leading international maritime centre and Singapore's insurance market has developed tremendously in recent years to serve the growing needs of the marine industry. Lloyd's Asia is actively contributing to the future shape of the maritime industry to ensure it retains its global leadership position."
Singapore is home to over 130 international shipping groups and more than 5,000 maritime establishments. The maritime sector employs more than 170,000 people and contributes 7 per cent to the country's gross domestic product (GDP).
According to the Singapore General Insurance Association, marine cargo gross premiums increased by 6.9 per cent to S$216.9 million in 2016, while hull premiums increased by 11 per cent to S$485.8 million.
Lloyd's business has grown significantly here in Singapore since Lloyd's Asia was set up as a representative office in 1999 with two service companies to support the growing marine and energy sector in Singapore and the Asia-Pacific region. Today, the Lloyd's Asia platform has 21 service companies writing 47 lines of business and out of an overall premium base of around S$850 million, the marine business has grown steadily to reach almost S$290 million in annual premium.
"As a regional hub for insurance and reinsurance, 90 per cent of the business written on the Lloyd's Asia platform comes from the wider Asia Pacific region due to the underwriting expertise that Lloyd's is able to offer here. Our presence has helped to grow Singapore as a hub for maritime services and insurance," says Mr Chaplin.
Lloyd's offers a range of marine insurance here including: cargo, marine hull, marine liability, marine war, ports & terminals, specie & fine art and yacht as well as the onshore and offshore energy classes of business. It also provides complementary insurance coverage for the marine industry including kidnap & ransom and political risk & trade credit risks.
In fact, Singapore is Lloyd's largest underwriting platform outside of London and employs over 365 people, of which 214 are underwriting staff, including 60 who are marine underwriters.
Looking ahead, Mr Chaplin says: "Lloyd's is committed to further developing our marine business across the region through continual product innovation and education to enhance understanding of risk management. Lloyd's is also conducting research into the emerging risk landscape, which has particular relevance to the marine industry, in areas such as cyber risk and terrorism."