Breeze calls for adjustment of maritime insurance

Breeze, a platform for integrated cargo insurance, has highlighted the growing gaps in marine war insurance caused by ongoing disruptions in the Red Sea, Gulf of Aden, and Persian Gulf. These developments pose a challenge for the insurance market, which can no longer ignore theoretical risks.

Patrizia Kern-Ferretti, Chief Insurance Officer of Breeze, emphasizes that while the marine insurance market has shown some resilience, it is not optimally aligned with current demands. “The war conditions in marine insurance have often evolved after crises, and the market now has the opportunity to address today’s uncertainties before they lead to disputes in the future,” explains Kern-Ferretti.

A central issue is that buyers of cargo insurance are underserved in several key aspects compared to customers purchasing ship insurance. While war coverage for ships can be canceled with a seven-day notice once the goods are in transit, cargo war coverage cannot be canceled. Although this provision offers critical protection for cargo owners, it also has its limitations. For instance, cargo war coverage may expire upon unloading or within 15 days after arrival at the port. Additionally, standard wordings often exclude the frustration of the voyage, and there is no direct equivalent to the detention clause for ships, leaving cargo owners in an uncertain position.

Breeze warns that these gaps are becoming increasingly significant as conflicts lead to route avoidance, blockades, and delayed transport, transforming technical insurance issues into practical risk concerns for shippers, logistics providers, and senders. “This is not a cause for alarm, but we need more clarity, better product design, and policy language that reflects the current risk environment,” Kern-Ferretti adds.

The company calls for a broader discussion on cargo war coverage and innovation in the insurance sector that makes protection clearer, more accessible, and applicable for exposed trade routes. Kern-Ferretti sees an opportunity for the market to modernize cargo war coverage before ongoing disruptions test policy language through disputes.

Breeze thus advocates for an adjustment of insurance terms to meet the current challenges in the maritime sector.

www.breezeai.com