From its very beginnings several centuries ago, marine and cargo insurance has always been highly international in nature. Moreover, as demonstrated by recent loss events as diverse as "DEEPWATER HORIZON", the 2012s "COSTA CONCORDIA" tragedy and New Zealand's worst ever maritime environmental disaster occasioned by the grounding and breaking up of the "RENA", the scale of marine risks has continued to grow.
The cargo market has not been immune, as evidenced by the notable market exposures reported in the Australian floods and Hurricane Sandy, as well as a significant cargo market loss in North Africa at the hands of the Arab Spring uprisings. As these risks have become increasingly complex, so demand for suitable insurance products has required a sophisticated and innovative approach from the insurance industry in response, especially where multinational clients are involved.
This report is in two parts. Consistent with the rest of ACE's series of reports on how to structure a multinational insurance programme, the first part sets out the general principles which need to be considered when developing a multinational programme for any class of risk. The second part of the report looks at the specialised context of marine insurance, Contractors All Risk (CAR) and Erection All Risk (EAR), with their distinct characteristics, and examines the extent to which these principles apply.
This report ends with a checklist of questions and issues that the marine insurance community as well as the property insurance community should be considering when designing and implementing a multinational programme insuring marine risks.