Chubb launches Lloyd’s consortium to address lithium battery risk
Lithium-ion batteries have certainly been exercising the finest minds in the marine insurance sector and here is the response from Chubb which is leading a new Lloyd’s of London consortium to tackle this issue. This article first aired in September 2023.
A new initiative was rolled out and launched by Chubb. A new Lloyd’s of London consortium has been created (which Chubb will lead) that is designed to provide insurance coverage for risks associated with the transit and storage of lithium batteries.
The consortium was created to address a lack of capacity in the marine cargo market for providing lithium battery transit and stock insurance. It provides a one-stop solution with limits up to $50 million for risk types associated with lithium batteries including transit, stock throughput, standalone stock and warehouse legal liability, and will include excess stock and part orders.
As mentioned, the consortium is being led by Chubb Global Markets (CGM), including its Lloyd’s platform, and supported by 11 other Lloyd’s syndicates. Chubb Global Markets will also draw on the capabilities of Chubb Climate+, the company’s global climate business unit launched early in 2023.
Rob Wilson, Chief Underwriting Officer for Chubb Global Markets said that the work involved in managing lithium battery risks is extensive and brokers can now use this facility to gain access to capacity in this new risk area.
He added, “The consortium provides brokers and insureds with a single port of call to bind these risks, helping to shore up the lithium battery supply chain as demand continues to grow.”
“The lithium battery industry is growing at a rapid rate and many businesses involved in moving and storing these batteries are increasingly in need of an experienced and reliable insurance partner and solution to support the ramp-up in production,” said Matt Hardy, Leader of Chubb Climate+ for Chubb Overseas General.
He further commented, “The creation of a consortium dedicated to underwriting these risks aligns firmly with our commitment to harnessing our underwriting and risk engineering capabilities to support the transition to a low-carbon economy.”
NCB launches second container inspection initiative to battle the dangers of misdeclared cargo
In September, the National Cargo Bureau released information about their second container initiative, which partially covers the issue of lithium-ion batteries.
National Cargo Bureau (NCB) has launched a second container inspection initiative to combat the persistent threat posed by misdeclared cargo. In a determined response to these sobering revelations and escalating concerns around ship fires, particularly those stemming from lithium-ion batteries, NCB is enhancing its inspection initiative. Several major shipping lines including Hapag Lloyd, Maersk and MSC have committed to the initiative, and container inspections have already commenced in various locations around the world.
Five years prior, NCB had again joined forces with industry leaders, Maersk, Hapag Lloyd, and MSC, in a trailblazing effort that laid bare the disconcerting realities within container transport safety.
Key findings from the analysis:
– 55% of inspected containers were non-compliant – 43% of containers failed due to poorly secured dangerous goods – 6.5% were found to be carrying mis declared dangerous cargoes.
Subsequent inspections, performed by NCB, have continued to reveal poorly stowed containers as well as undeclared and mis declared shipments of dangerous goods such as charcoal, flammable liquids, and used lithium-Ion batteries.
NCB expects this second round of inspections to expose further container deficiencies but, hopefully, reveal improvements since the first initiative.
Read the article in full at
https://bit.ly/3PRpVKv. Or scan the QR code.
THE REPORT | DEC 2023 | ISSUE 106 | 65
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