HDInsights July 2024 Ed.13 HDI Asia Pacific and Middle East Newsletter
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July 2024 | edition 13 4 6 7 8 9 10 11 13 14 18 19 21 24 Foreword - Stefan Feldmann Hello from Hong Kong - Daniel Lau Hello from Singapore - Alex Tarantino Hello from Dubai - Willem van Wyk Top Insurance Employer 2024 - HDI Global SE, Australia Stefan Feldmann takes on responsibility for commercial and specialty business of HDI Global in Australia & New Zealand HDI Global strengthens business in the Middle East with local presence in Dubai International Financial Centre HDI Global Dubai expansion sees local promotions for Australia branch office HDInsight LIVE: Marine Trends Factsheet: Be prepared - Wildfires/ Bushfires Transform your marketing campaigns with Prize Indemnity Insurance HDI Global Australia becomes a go-to provider for International Programmes HDInsight LIVE: Corporate Nuclear Verdicts Contents
Growth and Expansion Perth and Brisbane both marked important milestones with the opening of their new office locations. Perth’s new premises are located in the iconic QV1 Building on Perth’s St George’s Terrace, with Brisbane accelerating their transformation with their new office in Blue Tower. Both teams look forward to welcoming clients and brokers into their new spaces. We’re also delighted to announce the opening of HDI’s new Adelaide office. While present in the South Australian state for some years now, this move reflects the growth in support and relationships with the local Adelaide market. A successful start to the year My thanks first to all our team for a very productive and successful end of financial year and renewal season. On behalf of our team, thank you to all our broker partners and clients for your continued support with our business. HDI Global and HDI Global Specialty HDI Global SE and HDI Global Specialty SE are opening a new chapter in Australia and bringing together teams under one brand. As such, I am humbled and delighted to share that the HDI Board of Management have appointed me as MD for our combined teams. I would like to take this opportunity to acknowledge the dedication and contribution that Mark Fleiser has made and the strong team and business foundation he has laid for our organisation. His legacy leading HDI Global Specialty has been to establish high value MGA relationships and a strong pipeline of Delegated Authority and single risk business opportunities with the team which we shall continue to grow. The primary aim is to simplify our business operations and provide enhanced clarity and service for our brokers and customers. In Australia and New Zealand, this marks a clear direction of travel towards a more simplified and efficient organisation structure and cohesive value proposition. Stefan Feldmann, Head of HDI Global Asia-Pacific Managing Director HDI Global SE, Australia and HDI Global Specialty SE, Australia and New Zealand Foreword HDInsights edition 13 | page 4 Image: Colleagues representing HDI Sydney at the GSA Touch of Colour Event
Broker Partner Relationships Our HDI team were pleased to support and attend the Gallagher BOLD Conference held at the Brisbane Convention and Exhibition Centre. This was a chance for the HDI Queensland and wider team to network with brokers, learn from keynote speakers and panelists, and create future business opportunities. The QLD team also attended the first ever Aon marketplace in the Aon offices. This was an opportunity to connect with Aon Queensland by increasing our visibility and strengthening our strategic relationship. We hope you enjoy this issue and as always, please reach out to the team with your questions and any ways we can improve and better serve you and your clients. Kind regards, HDI Events HDI were delighted to host some of our valued broker partners and supporters of our Motor Fleet line in May. With thanks to Mercedes-Benz Melbourne, it was a beautiful day on the road with a scenic drive in some of the most advanced machines in the world through the Yarra Valley’s picturesque roads, followed by a lunch at TarraWarra Estate. HDI was also proud to be part of the Aon Initiative - The Rainbow Cafe that celebrates Diversity, Equity and Inclusion. A wonderful and important way to bring together colleagues to enhance work culture. A small group of AFL colleagues along with brokers from Gallagher and Aon also attended the ANZAC day AFL match at Melbourne Cricket Grounds. HDInsight Edition 10 - page 3 Foreword HDI Community In May, our Melbourne team were honored to be invited to The Salvation Army’s annual charity event, to mark the launch of The Red Shield Appeal. The HDI Sydney team were delighted to once again take part in the GSA Touch of Colour event, raising funds and awareness for KidsXpress. Now in its 10th year, this annual GSA event has raised around $1.3m to help support the wellbeing of children. Despite weather conditions, spirits remained high and we look forward to continuing our support of GSA and KidsXpress. Next month, 10 colleagues from our Sydney team will participate in the City2Surf, raising money for Sydney Women’s Fund. The City2 Surf is an annual fun run and race, spanning 14km from Sydney CBD to Bondi Beach. In July, we presented the very first Ben Coghlan High Achiever award, named in memory of our wonderful colleague Ben, who tragically passed away a little over 18 months ago. Ben was a remarkable individual, full of potential and spirit, and this award is our way of keeping his memory alive, while recognizing colleagues who embody the same qualities he brought to our team. We were very thankful to Ben’s parents Katrina and Andrew, and his partner Meg for attending with our colleagues in the Melbourne office. Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, Australia and HDI Global Specialty SE - Australia & New Zealand Image: Stephanie MacIntyre, winner of the Ben Coghlan High Achiever Award with Ben’s Parents, partner, and Stephen Jones. HDInsight LIVE We are pleased to share the highlights from our HDInsight LIVE online seminar in this issue. In May, experts from our Marine line in Australia, Hong Kong, and Singapore shared their insights on trends in the maritime industry and supply chains. On page 14, you can learn more about HDI’s substantial growth and leading capacity in the marine global program space. In June, our HDI Global Claims team explored the topic of Corporate Nuclear Verdicts. Although uncommon in Australia, the rise in ‘Nuclear Verdicts’ in the US has meant there is a potential for them to influence the Australian landscape. Please read more about this topic on page 24 to understand how to mitigate substantial payouts and take proactive measures to brace for impact. This award is a reflection of HDI’s commitment to supporting our team members development, continuing Ben’s legacy by inspiring others to achieve greatness and contribute positively to our workplace community. HDInsights edition 13 | page 5
Reflecting back on the recent months of this year, it’s evident that our commitment to innovation and collaboration continues to drive our success and growth. I am excited to share some significant milestones that highlight our ongoing efforts to strengthen our industry connections and explore new opportunities. Our Hong Kong team had the privilege of being invited by the German Chamber of Commerce in Hong Kong to visit the green energy manufacturing hub in Guangdong, China. This hub is a beacon of progress in the renewable energy sector, home to leading corporations producing critical components such as electric vehicle batteries, energy storage systems, and other green technologies. During our visit, we engaged in constructive exchanges with major industry players. We gained valuable insights into their future targets and potential needs for insurance cover. Our team was truly impressed by the high level of investment, automation, and technical expertise showcased at these facilities. In addition to this visit, we were honored to be part of the 15th Lujiazui Forum in Shanghai, China. The event, organized by the China Banking and Insurance Regulatory Commission (CBIRC) and the country’s largest insurers, was a pivotal moment for us. It included a signing ceremony for the Shanghai International Reinsurance Centre, a key initiative under the “Belt and Road” framework. HDInsight Edition 10 - page 3 Hello from Hong Kong Daniel Lau, Managing Director HDI Global SE, Hong Kong Hello from Hong Kong HDInsight Edition 10 - page 5 Daniel Lau Managing Director HDI Global Hong Kong Kind regards, The ceremony was witnessed by the Vice Mayor of Shanghai and the Deputy Director of CBIRC. HDI Global SE, in partnership with PVI Insurance, is proud to be a strategic partner with Ping An Insurance. I was delighted to represent both companies at this significant event, underscoring our commitment to supporting global reinsurance and fostering international cooperation. As we continue to embrace these opportunities, our experiences and engagements reflect our dedication to advancing our industry and contributing to sustainable growth. We look forward to sharing more successes and collaborations with you in the coming months. HDInsights edition 13 | page 6 Image: HDI Hong Kong team with the German Chamber of Commerce, Hong Kong Image: Members of Lujiazui Forum, including team HDI Hong Kong, Shanghai
HDInsight Edition 10 - page 3 Hello from Singapore Alex Tarantino, Managing Director HDI Global SE, Singapore HDInsight Edition 10 - page 5 My first week in Singapore has given me the opportunity to reflect on key moments and thoughts throughout my time in the Insurance industry. Firstly, I am grateful for the deep legacy my predecessor Graham Silton has built. This has highlighted the importance of good leadership and the power of culture. He will be greatly missed by all. After spending my first week getting to know the team and starting to build new relationships, I have learnt what a vibrant and passionate team HDI has built with a rich and diverse culture. We will continue to embrace and build on our transparency, engagement, collaboration and trust values. Our team is continuing to grow as we build for the future. We must also remember to remain humble and support others in our efforts. It was a great honour to be a main sponsor and recipient for the Marsh World refugee day appreciation dinner 2023. The impromptu stage presentation was unexpected, a reminder to always be prepared to expect the unexpected. The city of Singapore is as vibrant as ever. I am excited to see growth opportunities in this cultural hub as HDI continues to be your Partner in Transformation. I greatly enjoy reconnecting with past friends and making new connections, still with many more to meet. Recent months have been marked by some significant events and achievements. Alex Tarantino Managing Director HDI Global Singapore As we move forward, I am enthusiastic about the opportunities ahead for HDI Global Singapore. We will continue to foster strong partnerships, innovate across our service offerings, and uphold out commitment to excellence with everything we do. I look forward to collaborating with each of you as we embark on this journey of growth and continued success. Thank you to my colleagues and network for the warm welcome into my new role. Warm regards, In late June, we had a notable presence at the International Property Conference in Hannover where property underwriters Jeremy, Ed, Dale and Riziq from Dubai engaged in insightful discussions and valuable networking opportunities. This conference reminds us of our commitment to enhancing our capabilities in the Property sector, both locally and globally. In addition, we hosted a Semiconductor training session led by Moey Park Moon and Derek Yon, enriching the team's technical expertise and strategically positioning us in this dynamic sector. HDInsights edition 13 | page 7 Hello from Singapore Image: HDI Global SE Singapore team gather to farewell Graham Silton Image: HDI Global SE Singapore team members at the Semiconductor training
It has been an exciting couple of months preparing for the launch of our office here in the Middle East. I am pleased to share the HDI operation has received regulatory approval to do business from the Dubai Financial Services Authority (DFSA), the independent regulator of Financial Services conducted in the Dubai International Financial Centre Authority (DIFC) where our office is now based. The news has been welcomed at HDI and we are pleased to now begin trading. The team here, consisting of three people, have already met many of the DIFC brokers and we are all feeling very encouraged by the positive welcome we’ve received. I am sure we will make proud the HDI Board, management and everyone else who supported this DIFC journey so far. A special thanks to the teams in Singapore, Sydney, Head Office Underwriting and Market Management in Hannover for their support so far. Without the dedication of many individuals this process would have taken many months longer. HDInsight Edition 10 - page 3 Hello from Dubai Willem van Wyk, Senior Executive Officer HDI Global SE, Dubai HDInsight Edition 10 - page 5 Warm Regards, Willem van Wyk Senior Executive Officer HDI Global Dubai I am deeply thankful for my colleagues, Riziq Ishaq and John Morrell, who decided to join the team here. I’m delighted to have two people of their calibre and have no doubt that these talented individuals will ensure we build a strong profitable business over the next few years. Our three focus areas for the first few months will be: To establish a strong reputation at HDI so we can be trusted to make good decision for the longterm benefit of our stakeholders. 1. We will also be active in the marketplace, promoting the many capabilities of HDI, and establish a reputation that we are good dealmakers. 2. Lastly, to establish disciplined and efficient processes on which to build a successful business. 3. Thank you for all the encouragement and support as we launch our Dubai office. I look forward to seeing the business grow and adding to the success of the DIFC and the HDI group. Please reach out to myself and the team to learn more about the Dubai entity. HDInsights edition 13 | page 8 Hello from Dubai Image: The HDI Global SE Dubai team and Stefan Feldmann on their first day in the DIFC
“A broker just recently described us as ‘refreshingly different,’ which truly resonates with our approach,” says Stefan Feldmann Head of HDI Global Asia Pacific, Managing Director HDI Global SE Australia and HDI Global Specialty SE – Australia & New Zealand. As one of IB’s Top Insurance Employers of 2024, HDI Global maintains a startup mentality despite its growth to 200 employees across Australia and New Zealand. From its offices in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Auckland, colleagues work, gather to share stories in a collaborative environment where they can perform to their potential. Through their diverse expertise and leadership, the organization’s executive team has significantly shaped its performance by: strategic regional expansion fostering diversity and inclusion promoting risk awareness maintaining strong client relationships driving growth in new areas enhancing market service capabilities ensuring robust financial oversight As a Top Insurance Employer, HDI Global prioritizes transparency, competitiveness, and fairness in employee compensation. It conducts regular market analysis to benchmark salaries, offers performance bonuses, and provides professional development opportunities. A culture of continuous learning complements its approach to diversity, equity, and inclusion (DE&I), fostering a workplace where every voice is valued. Employee satisfaction is gauged through regular feedback loops, allowing leaders to assess factors such as job satisfaction, work-life balance, career development opportunities, and addressing concerns. HDI is committed to expanding its DE&I efforts to enhance its status as an employer of choice. In recent years, the commercial and specialty lines insurer has increasingly focused on the mid-market, supporting this vital segment with technical expertise and strong broker partnerships. This strategic focus has driven strong growth in its Australian commercial and specialty business, thanks to its close industry relationships. Its property, liability, engineering, marine, accident and health, motor fleet, and specialty products with mid-market clients make up over a third of its book of business. HDI Global also serves industrial corporate and middle-market clients with tailored insurance solutions, leveraging its extensive global network spanning over 175 countries through HDI branch offices, subsidiaries, affiliated companies, and network partners. Top Insurance Employer 2024 HDI Global SE, Australia HDI Global SE, Australia prioritises genuine partnerships as a relationship insurer, with client centricity at the heart of all its actions. With a focus on expanding its products and capabilities, the organization supports its broker partners and clients where they need it most. Top Insurance Employer 2024 HDI Global SE, Australia HDInsights edition 13 | page 9 First published on Insurance Business, 15 July 2024 “We constantly look for new ideas and opportunities to cultivate a sense of belonging with our brokers and clients as part of our community, as we can only grow our business with their partnership.” Stefan Feldmann Head of HDI Global Asia Pacific, Managing Director HDI Global SE and HDI Global Specialty SE - Australia & New Zealand
third of our book.” Stefan Feldmann takes on responsibility for commercial and specialty business of HDI Global in Australia & New Zealand Stefan Feldmann takes on responsibility for commercial and specialty business of HDI Global in Australia & New Zealand HDI Global announces the appointment of Stefan Feldmann as the new overall Managing Director HDI Global Australia, extending his responsibilities to also oversee HDI Global Specialty - Australia and New Zealand, effective as of 1 July 2024. HDInsights edition 13 | page 10 Stefan Feldmann has been with HDI for 14 years, serving as Managing Director of HDI Global Australia since 2012. Retaining that role, he will now be fully responsible for both commercial and specialty business in Australia and New Zealand. The alignment of HDI’s commercial and specialty operations in the region marks a clear direction towards a more efficient organisational structure and unified value proposition, says Stefan Feldmann. The new overall Managing Director stresses the setup will deliver a range of benefits for brokers, clients and employees. According to Feldmann, HDI’s ability to act as a true one-stop shop for clients is now further improved, allowing HDI Global to serve as their preferred Partner in Transformation. Mark Fleiser, Managing Director HDI Global Specialty SE – Australia, will be leaving the business under mutual agreement at end of June 2024, following a restructure which has impacted the local HDI operations. Under Fleiser’s leadership the branch grew significantly and consistently delivered strong results. He says that the last nearly 15 years with the company have been truly rewarding and the successes that have been achieved personally and by the company are to a great extent testament to the incredible team that supported himself and the business over the many years. “This is an important step for HDI in Australia and New Zealand. Our ability to capitalize on the variety of propositions and vast expertise from across the commercial and specialty business will help secure HDI’s long-term strategy in the region. I’m delighted for our clients and broker partners as Stefan brings to them business continuity and vast knowledge of the region." David Hullin Member of the HDI Global SE Executive Board, responsible for region Germany (without Germany), Americas, ASEAN, South Africa and Middle East “This arrangement allows us to facilitate services for brokers and clients. I’d like to wish Mark all the best for his future. Under his leadership, HDI’s specialty operation has developed into a trusted expert with a strong proposition for clients in Australia and New Zealand. As always, the new appointment is subject to approval by the relevant local authorities.” Ralph Beutter Member of the HDI Global SE Executive Board, responsible for HDI Global Specialty
third of our book.” HDI Global strengthens business in the Middle East with local presence in Dubai International Financial Centre HDI Global strengthens business in the Middle East with local presence in Dubai International Financial Centre HDI Global SE continues its international expansion receiving a regulatory license from Dubai Financial Services Authority (DFSA) to open an office in Dubai. The new local presence in Dubai International Financial Centre (DIFC) will allow HDI Global to bring its global financial strength and technical expertise closer to clients in the Middle East. The new Dubai office Managing Director, Willem van Wyk, brings over three decades of global insurance industry experience including senior leadership roles in the Middle East market and beyond. Previously Regional Market Manager ASEAN and Australasia, Willem van Wyk has contributed to the significant profitable growth in the Asia Pacific portfolio working closely with teams in Australia, New Zealand, Singapore and Hong Kong branch offices since joining HDI Global in 2020. Prior to joining the HDI Global team, he held senior positions at AGCS, Marsh and Commercial Union, including as CEO AGCS in Dubai from 2016-17. This followed his previous experience in the Middle East in the insurance industry, living there from 2001-05. “The Middle East continues to become a more important player in the global economy. The DIFC is a dynamic marketplace that provides growth opportunities for HDI now and in the future. HDI is excited to bring A-rated capacity and a strong underwriting team to support brokers and clients in the DIFC. As a Partner in Transformation we are confident with our global capabilities and technical expertise that HDI can support our clients in their transition to the economy of the future." Willem van Wyk Senior Executive Officer and Director HDI Gobal, Dubai The Dubai office of HDI Global is part of a logical progression of the industrial insurer’s successful business development in the Asia Pacific and Middle East region. “As part of the overall global vision and APAC growth strategy, Dubai is an exciting opportunity for us to move closer to this expanding market, strengthen our relationships with brokers and clients by providing solutions through a local team of underwriters, led by Willem van Wyk who has many years’ experience in the market,” says David Hullin Member of the HDI Global SE Executive Board, responsible for region Germany (without Germany), Americas, ASEAN, South Africa and Middle East. He continues: “HDI Global’s move demonstrates our successful business development and supports our global vision to be the Partner in Transformation for our clients. For brokers in the region, they will have local access to a longterm reliable partner with responsive claims, international programmes, and risk consulting capabilities for their clients. I wish Willem and the entire team in Dubai every success." “We welcome HDI Global to DIFC. As the region’s largest financial centre with over 42,000 people, DIFC continues to enhance its ecosystem for the sector. With its 20-year strong trackrecord of servicing people and businesses in the region, the Centre is home to the largest cluster of over 100 registered insurers, reinsurers, captives and insurance-related entities who are utilising our platform to achieve their growth ambitions. Our world-class laws and regulations enable these companies to confidently operate in the jurisdiction, capture new growth opportunities, and collectively contribute to driving the future of finance.” Arif Amiri Chief Executive Officer DIFC Authority
HDI Global plans to commence its operations from DIFC in the third quarter of 2024 and will initially offer engineering, construction and property insurance products. Riziq Ishaq has been appointed to lead the property underwriting line, and John Morrell will lead construction and engineering. Riziq Ishaq brings over 20 years of experience in the insurance industry, having worked with companies like Allianz, Zurich, and IGI. He has a proven track record in running profitable portfolios and possesses strong business development skills. With extensive expertise in portfolio steering and risk management, Ishaq's rich professional history with direct, regional, and international insurance and reinsurance companies has equipped him with a vast network of relationships and significant underwriting expertise across the region. John Morrell, previously Underwriting Manager Engineering, Northern Region, in the Australian branch of HDI Global has relocated to Dubai end of June. He joined HDI Global in 2017 following his earlier engineering career and brings a strong background in managing large-scale infrastructure projects and a deep understanding of technical and industry requirements. Other functions and underwriting lines of business including liability and marine will be provided via HDI Singapore office, with the vision to transition to a fully integrated business in the medium term. In line with the appointed underwriters, the focus will initially be the provision of Property and Engineering insurance solutions. As the business grows, additional lines of cover will be offered as part of the portfolio in Dubai. Contact - HDI HDInsight Edition 10 - page 19 HDInsights edition 13 | page 12 “ HDI Global strengthens business in the Middle East with local presence in Dubai International Financial Centre "Our clear goal will be to offer our clients and business partners innovative solutions, capital strength, stability, technical expertise, and reliable service – whether they operate internationally or solely in the Middle East. Thanks to our global network, we enable clients and brokers to operate worldwide with compliance and confidence,” says Willem van Wyk. Willem van Wyk Senior Executive Officer and Director HDI Global Dubai P: +971 50 552 8707 Willem.vanwyk@hdi.global John Morrell Head of Engineering Underwriting, Middle East HDI Global Dubai P: +971 50 245 5297 John.morrell@hdi.global Riziq Ishaq Head of Property and Deputy Senior Exec Officer HDI Global SE, Dubai Riziq.ishaq@hdi.global
Contact - HDI third of our book.” HDI Global expansion sees promotions across Asia Pacific region HDI Global Dubai expansion sees local promotions in Australia branch office HDI Global SE opens new office in Dubai to be led by Willem van Wyk as Managing Director. The move will see Karina Rodriguez Diaz promoted to lead the Market Management team in Australia and New Zealand, while Stephen Jones expands his responsibilities to lead across the state branch offices following strong portfolio growth across the regions. HDInsights edition 13 | page 13 In their new roles, Karina Rodriguez Diaz will oversee market strategy, broker partnerships, major account practice, communications and international programmes in Australia and New Zealand. While Stephen Jones will expand his current role as head of VIC, TAS and SA to oversee all other regions in Australia enhancing broker engagement and steering portfolio growth. In addition, both will have responsibilities in growing specialty lines for HDI. “As we continue our integration with our Specialty lines, from a market management perspective we have already seen success with their expertise with Stephen bringing his distribution experience to Delegated Authority, and Karina developing the Single Risk proposition,” says Stefan Feldmann. The new office abroad will also see John Morrell relocate to head up Engineering and Construction underwriting for HDI Global SE Dubai. “Given our focus on strong profitable growth we are delighted to draw on the talent and leaders in our team and announce these promotions. We have a portfolio of leading Australian businesses and projects in corporate and middle market and are embracing our expertise, while remaining nimble. With our state offices going from strength to strength, we’re positioned to bring the best of HDI across Australia.” Locally, Stevan Bonic in turn has been promoted to Technical Underwriting Manager Engineering Australasia, expanding his remit to oversee the Northern Region portfolio in addition to his current Southern Region responsibilities. “I’m thrilled we have such experts as Willem and John to grow our business as a global company, and the local expertise here to continue to grow the portfolio with the foundation they have laid. As one of our outstanding engineering and construction underwriters, Stevan Bonic is a great example of our commitment to technical expertise and growing in areas the market values in our business. Together the team will continue to collaborate to ensure HDI delivers innovative solutions for our brokers and clients.” “This movement in our team demonstrates the upward and international mobility of our people and our commitment to providing a platform where performance meets potential. I am delighted with these appointments and wish all our colleagues the best with their new endeavors,” says Stefan Feldmann. Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, and HDI Global Specialty SE - Australia & New Zealand Karina Rodriguez Diaz Head of Market Management Australasia HDI Global SE P: +61 413 243 978 Karina.rodriguezdiaz@hdi.global Stephen Jones Head of State Management HDI Global SE, Australia P: +61 410 314 550 Stephen.jones@hdi.global Stevan Bonic Technical Underwriting Manager Engineering Australasia HDI Global SE, Australia P: +61 413 994 142 Stevan.bonic@hdi.global
These attacks resulted in damage to containers and carriers traversing the region. However, swift action was taken by shipping companies, rerouting vessels away from the Red Sea within a week or two of the incidents. According to Mr Barn, most trade vessels traveling from Asia to Europe have now redirected their routes via the Cape of Good Hope and surrounds in Africa. While this adjustment addresses safety concerns, it introduces new challenges. The extended voyage, which is about 25-30% longer than usual, not only causes delays in merchant shipping, but also, for various reasons; “increases the likelihood that and the expected costs if a general average loss occurs.” Moreover, navigating through African waters incurs an additional cost burden. On average, vessels use an extra US$1 million in fuel expenses, which inevitably gets passed on to cargo owner. Proprietary ship valuation tools help to evaluate the risk of technical failure of a seagoing vessel and the resulting direct or indirect implications for the goods. An approximate assessment of the ship's value in relation to the known value of the goods also helps to anticipate the level of costs borne by the owner of the goods in the event of a General Average due to technical failure. Markus Ebest, representing HDI Risk Consulting GmbH (HRC) at HDI Global in Germany, says the current challenges extend beyond physical risks due to the highly volatile political and security situation. There's notable growth in global marine insurance programs, with HDI Global expanding its capacity and network across numerous countries. HDI experts from Australia, Singapore, Hong Kong and Germany shared insights on current trends as well as some of the challenges the industry faces in a recent HDInsight LIVE online seminar. Over the past few years, the maritime industry has faced a constantly changing environment, from pandemic delays and regulations, to challenging geopolitical situations that required immediate action. With supply chains increasingly interconnected, there is a growing need for higher standards in carrier selection and cargo loading practices as well as insurance coverage to protect against transit damage. Ensuring that shipments arrive at their destinations intact and on schedule is crucial for companies to maintain their market standing. HDI Global offers coordinated services in insurance coverage, risk consulting, and claims management, both domestically and internationally. In a recent HDInsight LIVE online seminar on marine trends, experts from Australia, Singapore, Hong Kong, and Germany shared their views on current global challenges and developments. Mark Barn, International Marine Claims Manager at HDI Global in Australia, highlighted the impact of recent events in the marine claims arena, particularly attacks on vessels by Houthi rebels based in Yemen. HDInsight LIVE online seminar Marine Trends HDInsights edition 13 | page 14
HDInsight Edition 10 - page 21 “These complexities significantly impact supply chains,” he said. The longer voyage times mean that more ships are needed to meet the demand. Delays in re-bunkering, particularly in South Africa, further exacerbate the situation. “Another side effect is that due to the longer transport and higher oil and fuel consumption the emission score is negatively affected,” he explains. Consequently, there's also a resurgence of older tonnage – vessels up to 40 years old and more – in order to be able to serve the required transport capacities. Previously relegated to secondary markets due to inefficiencies or liability concerns, these vessels are now reemerging on major trade routes, driven by demand. The reliance on older vessels introduces new risks: Potential breakdowns, whether in propulsion or machinery, pose significant threats, potentially leading to costly salvage operations and general average cases. To address these challenges, HDI employs proprietary ship valuation tools, particularly crucial in industries like automotive transportation where cargo values far exceed those of the vessels themselves. For instance, large vehicle carriers may carry cargo valued at hundreds of millions of dollars per shipment, contrasting sharply with the relatively modest worth of older vessels. The nature of risk consulting within cargo transportation is multifaceted, as Markus Ebest, representing HDI Risk Consulting GmbH (HRC) at HDI Global in Germany, explains. Traditionally, this involves meticulous assessment and approval of loading plans, lifting plans, cargo securing strategies, packaging design, transport & warehouse security, theft protection and various other measures to minimise the risk of damage to the cargo. Additionally, selecting appropriate vessels is paramount to minimize the potential for failures that could trigger general average scenarios. HDInsight LIVE: Marine Trends “Floods in Dubai as a significant challenge alongside the Red Sea issue. The unexpected occurrence of flooding in a desert environment raises concerns about similar events happening elsewhere, he said. In his opinion this also underscores the importance of addressing stock throughputs, which has long been a focal point of discussion among brokers.” Kenneth Cheong Underwriting Manager, Marine Cargo HDI Global SE Singapore HDInsights edition 13 | page 15 Automotive transportation Apart from the German car manufacturing sector, HDI actively participates in prominent automotive cargo programs across Europe and the United States, Kenneth Cheong, Underwriting Manager, Marine Cargo HDI Global in Singapore, says; “We also have involvement with a Korean manufacturing company and quoted for a leading global electric vehicle manufacturer in China,” he said. Mr Ebest adds that the trajectory of electric vehicle (EV) sales continues to surge, with an estimated 17 million sales in 2024 globally, with China dominating at 45% market share. Projections see a staggering rise to 735 million EVs worldwide by 2035, fostered by a transition toward net-zero emissions. “I want to highlight HDI's substantial growth and leading capacity in the marine global program space. With a presence in over 175 countries, HDI offers tailored solutions for businesses operating nationally and provides valuable insights for multinational clients venturing into foreign markets. HDI has written nearly 5,100 international programs globally, supported by approximately 28,500 local policies across different countries, showcasing its world-class experience in the Asia Pacific region.” James Lo Underwriting Manager Marine HDI Global SE Hong Kong
Addressing safety concerns, Mr Ebest emphasizes that undamaged, properly and regularly maintained EVs, including hybrids, pose minimal risks. He notes that new vehicles undergo rigorous testing before leaving factories and are unlikely to self-ignite spontaneously in the distribution process. Despite potential thermal runaway risks due to mechanical, electrical or thermal excitation, statistical evidence suggests EVs are generally safe, with rare exceptions such as DIY conversions. Future challenges in maritime transport lie in dealing with the expected increasing mix of new and used EVs due to the aging of the vehicle fleet, necessitating enhanced safety protocols. These include limiting battery charge to 30% (SoC), pre-loading inspections, and continuous monitoring of battery health (SoH) and its transmission to shipboard systems. Additionally, fire prevention strategies onboard vessels, including early detection systems and rapid response tactics, as well as adaptions and upgrades to shipboard fixed fire extinguishing systems, are crucial. In order to achieve the best possible risk development, all interests involved in transport must come together openly and unreservedly and work together on a holistic continuous improvement process. According to Mr Ebest, there are ongoing discussions at the International Maritime Organisation (IMO) regarding EV safety, with industry collaboration vital for effective regulation and risk mitigation. HDI actively engages with regulatory bodies to develop comprehensive loss prevention measures, ensuring safe transportation amid evolving challenges. Dynamics within the commodity space Andrew Perry, Marine Underwriting Manager for the Western Region at HDI Global in Australia, discussed the dynamics within the commodity space, particularly in Western Australia. Mr Perry notes significant fluctuations in prices, with commodities like LNG and spod concentrate (Spodumene), crucial for lithium batteries, experiencing notable spikes followed by a subsequent normalisation. Currently, spod concentrate prices have declined, prompting some mines to enter care and maintenance mode while awaiting price recovery, he said. However, many mines maintain prolonged contracts, ensuring continued production, albeit at slightly reduced levels compared to a year ago. Mr Perry also highlights the industry's resilience which should prevail into the future given the expanding electric vehicle market. HDInsight Edition 10 - page 21 “It also should be mentioned here that the batteries and the thermal runaway develop toxic as well as explosive gases. Up to 30% of the emitted gases are hydrogen. If this can collect in pockets on board and ignite, an explosion can occur. Such vapour cloud explosions have also been observed very frequently in fires involving leaks from batteries on land. So better detection of incident fires on board using video surveillance, thermal cameras and/or gas detectors is also required.” Markus Ebest HDI Risk Consulting GmbH (HRC) HDI Global, Germany In 2022, the Panama-flagged Felicity Ace, a cargo ship carrying 4000 cars from Germany to the United States, sank in the mid-Atlantic 13 days after a fire broke out aboard. It sank roughly 400km from Portugal's Azores Islands. Efforts to tow it failed as the ship began to sink due to structural problems caused by the fire and rough seas. HDInsight LIVE: Marine Trends However, if the transportation of EVs leads to vessel fires, especially those involving roll-on/roll-off (RORO) vessels, these then present significant financial risks, with losses reaching up to $450 million in some instances according to Mr Barn. Addressing the aftermath of such incidents, he highlights the complexities involved in assessing damages and determining causes, particularly due to the scarcity of fire experts available to board affected vessels. Moreover, the financial implications extend to general average and salvage securities, necessitating large-scale mitigation efforts for damaged vehicles. In addition to physical damages, Mr Barn points out the challenges associated with fear of loss claims and the extensive decontamination required post-fire incidents, regardless of whether they involve conventional fires or lithium-ion battery fires. Such clean-up efforts incur significant expenses according to Mr Barn.
HDInsight LIVE: Marine Trends HDInsights edition 13 | page 17 in addition to spod concentrate, he also discussed the significance of iron ore in the region. While the price surged approximately a year ago, it has since stabilized at around $100 to $120 per ton, maintaining profitability for mines in the sector. The Baltimore Bridge Incident Joel Richards, Marine Underwriting Manager for the Southern Region at HDI Global in Australia, delves into the complex implications of the Baltimore Bridge incident, a challenging recent marine loss. Situated in Maryland, Baltimore Port ranks among the top 20 ports in the US by tonnage and container handling, making it a significant hub for various commodities, including motor vehicles. The incident encompasses multiple types of losses, including material damage to the vessel hull and cargo, pollution damage, and substantial third-party liability claims according to news reports. The ship owners have sought to limit their liability, invoking a maritime law from 1851, but the financial ramifications extend far beyond the initial incident. With estimated losses ranging from two to four billion US dollars, the event could surpass previous recordsetting marine losses, such as the 2012 Costa Concordia disaster. From an industry perspective, this incident could lead to increased reinsurance costs, compounding existing market challenges, including geopolitical tensions and logistical disruptions post-pandemic. Staying across trends in the changing environment the HDI Global marine underwriting and claims teams, with the support of its HDI risk consulting, are well positioned to help business partners navigate the challenges and expect the unexpected. Francis Scott Key Bridge collapse On March 26, 2024, at 1:28 a.m. EDT, the main spans and the three nearest northeast approach spans of the Francis Scott Key Bridge across the Patapsco River in the Baltimore metropolitan area of Maryland, United States, collapsed after the container ship Dali struck one of its piers. The accident resulted in six fatalities. “Over the next few years I expect to see trade patterns change with evolving political environments and potential increased tensions; shipping trends will follow with these changes. We are seeing an aging fleet still being utilised and hopefully new builds, especially with regards to vehicle carriers, will have increased fire prevention.” Joel Mitchell Marine Underwriting Manager, Australasia HDI Global SE, Australia Please contact our HDI Team with questions Watch here: HDInsight LIVE: Marine Trends Contact - HDI James Lo Underwriting Manager, Marine HDI Global SE Hong Kong P: +852 25888541 James.Lo@hdi.global Joel Richards Marine Underwriting Manager, Southern Region P: +61 498 033 373 Joel.Richards@hdi.global Joel Mitchell Marine Underwriting Manager, Australasia HDI Global SE Australia P: +61 421 773 118 Joel.Mitchell@hdi.global Kenneth Cheong Underwriting Manager, Marine Cargo HDI Global SE Singapore P: +65 (0) 9848 5804 Kenneth.Cheong@hdi.global Mark Barn International Marine Claims Manager HDI Global SE Australia P: +61 416 105 758 Mark.Barn@hdi.global Andrew Perry Marine Underwriting Manager, Western Region P: +61 423 758 864 Andrew.Perry@hdi.global
Contact - HDI The HDI Risk Consulting team share the dangers of wildfires and strategies to manage the risks of these fires. Wildfires near populated areas may increase human mortality and morbidity. Air pollutants and particles contained in the smoke from wildfires can have a considerable impact on the health of animals and people living in the vicinity of fires. Particulate matter is considered particularly problematic. Sometimes, such areas must be evacuated. Besides that, the impact of wildfires on health can be reduced by implementing appropriate emergency prevention measures, emergency management measures and recovery measures in a sustainable and timely manner. Be prepared - Wildfires / Bushfires HDI Risk Consulting Learn more Philipp Glanz Risk Engineering Manager, Asia Pacific P: +61 498 016 552 Philipp.glanz@hdi.global Please contact our HDI Team with questions Click here to view factsheet. HDInsights edition 13 | page 18
Transform your marketing campaigns with Prize Indemnity Insurance In a world of constant marketing noise, short attention spans and ever-changing consumer behaviour, creating a point of marketing difference has never been more relevant. Enter Prize Indemnity Insurance – a strategic and innovative solution that allows businesses to leverage modest marketing budgets into viral, knock-out campaigns that drive increased sales, incentivise consumer behaviour and loyalty, and create an unparalleled buzz around their brand without the looming fear of financial risk. In this article, Chris Milne explores Prize Indemnity Insurance, highlighting its benefits and demonstrating how this little-known insurance product can elevate your business to a market-leading position. What Is Prize Indemnity Insurance? Ever wondered how brands can offer the opportunity to win million-dollar prizes in a promotional campaign? Or perhaps you’ve seen cash-back offers that feel too good to be true? Chances are these campaigns are being bankrolled by insurance. In its most basic form, Prize Indemnity Insurance is a specialist insurance product used to offset a company’s financial exposure, linked to a chance-to-win or redemption-based marketing campaign. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be won, or redemption offering exceed expected levels. Buying Attention without the Financial Risk Using Prize Insurance, a business can leverage a modest marketing budget into an offering with a knockout headline prize. Every element of the promotion is targeted to grab customer attention and influence consumer behaviour and typically there’s a prize game at the end of the promo, giving further customer interaction. Transform your marketing campaigns with Prize Indemnity Insurance If the headline prize is won, an insurance policy covers the type and value of the prize offered. In offsetting the chance of a major prize being won, a business caps its promotional spend while basking in the marketing glory it has created. As the insurance is odds-based, it’s entirely possible to back the prize value (and probability of it being won) into a pre-set marketing budget. A Catalyst for Customer Engagement and Loyalty Promotions backed by Prize Indemnity Insurance are not just about rewarding the lucky winners; they serve as a catalyst for customer engagement and loyalty. The allure of valuable prizes draws in audiences, encouraging them to participate and engage with the brand. This unique and exciting experience helps build a deeper connection between customers and brands, increasing brand recall and loyalty. The benefits to a business of running an insured promotion include: Expanding your social media presence Data capture / developing future marketing tools Delivering measurable ROI Encouraging brand recall Working within a fixed budget HDInsights edition 13 | page 19
Contact - HDI Types of Insurable Promotions Any promotion involving a “chance to win” can generally be insured, provided it adheres to legal terms and conditions. Businesses can be as creative as they like with their promotion themes, entry mechanics, and winner selection processes. The insurance typically covers the final prize game or redemption offering. There are two main offerings that Insurance is provided for: 1. Chance to Win Promotions These are where consumers get the chance to win a prize based on probability, like: Games of Chance – pure statistically-based offerings like themed envelope draws and wheel spins, offering a chance to win based on predefined odds. Games of Skill – requiring participants to complete a task or challenge to win. Think target throws/kicks, pick the score or half-court basketball shots. Factorials – Where entrants select certain factors in the correct order to win. For example, select the finishing order of the top 10 drivers at the F1 Australian Grand Prix. 2. Consumer Redemption Promotions These are where consumers can redeem or receive something extra when purchasing products. You can insure against greater than expected redemption rates (which lead to increased business costs). Examples include: Collect and Get – collect receipts from eligible products purchased to win or redeem a prize. Cashback Offers – buy a product and enter details online to receive cash back. Gift or Voucher with purchase – say a $10 hardware store voucher when you buy a slab of beer. Instant Win – Enter for your chance to win a prize following purchase. McDonalds ® Monopoly is a great example. Market Trends With over 60,000 trade promotions in Australia and New Zealand each year, standing out in this crowded market is challenging. HDInsight Edition 10 - page 19 Christopher Milne Senior Underwriter, Contingency & Entertainment P: +61 456 825 371 Chris.Milne@hdi-specialty.global HDInsights edition 13 | page 20 While Prize Indemnity Insurance is popular in developed insurance markets, it remains underutilized in Australia and New Zealand. However, awareness is growing as companies seek ways to offer large prizes without the associated financial burden. Businesses are increasingly recognizing the value of Prize Indemnity Insurance for transferring contractual liabilities off their balance sheets and driving sales and revenue. The Prize Indemnity Insurance sector is nearing preCOVID levels despite difficult market conditions. As insurance buyers become more sophisticated, the demand for single solution providers offering comprehensive promotion insurance packages is rising. These packages include: Obtaining necessary permits Drafting promotion terms and conditions Providing draw technology (online or offline) Arranging and providing supervision Securing Prize Indemnity Insurance Why HDI Global Specialty? HDI can offer specialist products to assist with all aspects of an insured promotion with appetite for a variety of prize values to fit into a marketing budget. Our Underwriters are leading practitioners in this highly specialized and demanding class of business, with over 15 years’ experience helping brands with prizes and promotions. Our customers value HDI Global Specialty’s experience in our tailored approach to Prize Indemnity insurance and our ability to provide a bespoke policy for their promotions, an integrate this with a network of experienced loss adjusters to oversee the final prize game or draw. Transform your marketing campaigns with Prize Indemnity Insurance
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