Oneglobal is an innovative commercial insurance and reinsurance broker set up with the singular focus of improving the way in which businesses around the world manage risk via insurance.

Jianjun Wang, Oneglobal Hong Kong’s new Head of Business Development, attended the Mare Forum in Singapore last week, where he took part in the panel discussion: 'What are the benefits of the features of alternative Finance and other models to the global shipping industry? Where does the money come from, and how do you get it?"

Alternative ship finance: There is a growing interest in alternative ship finance models that support the development of low-carbon shipping technologies and infrastructure. This includes the use of green loans, sustainability-linked loans, and other forms of sustainable Finance. From a marine insurance perspective, this trend may result in a reduction in the risk profile of shipping companies, which could lead to lower insurance premiums.
 
Carbon pricing: The adoption of carbon pricing is likely to have an impact on marine insurance. As companies face higher costs associated with carbon emissions, they may be more likely to invest in low-carbon technologies and infrastructure, which could lead to a reduction in the risk of environmental incidents. This, in turn, could result in lower marine insurance premiums.
 
Sustainable Finance: The adoption of sustainable finance practices is likely to have an impact on marine insurance. As investors and lenders increasingly prioritize companies and projects with strong ESG credentials, shipping companies that adopt sustainable practices may be viewed as lower risk by insurers.

As the shipping industry moves towards decarbonisation, it is likely that the risk profile of shipping companies will change, which could result in lower insurance premiums for those that adopt sustainable practices.

Source: Xinde Marine News

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.