News by sections

News by region
Issue archives
Archive section
Emerging talent
Emerging talent profiles
Domicile guidebook
Guidebook online
Search site
Features
Interviews
Domicile profiles
Generic business image for news article Image: Shutterstock

25 November 2014
Copenhagen
Reporter Stephen Durham

Share this article





Maersk establishes captive

The Maersk Group has established its own captive insurance company, Maersk Insurance.

This has led to a decline in the amount paid out to insurers of around $100 million per year.

Earlier this year, Maersk experienced what it called a “stark reminder” of the constant risk it faces after 517 containers were lost overboard and another 250 were damaged during a storm in the Bay of Biscay.

Although the financial cost of the incident is still being assessed, Maersk has stated that it could be as high as $15 million.

In 2010, it was estimated that the group was spending between $300 million and $350 million per year on insuring its assets.

“We have a big balance sheet and can retain a lot of risk ourselves,” explained Lars Henneberg, head of risk management for the Maersk Group.

“It means we don’t have to pay a premium to the external insurance market.”

Typically, losses below $1 million are taken on by the business unit, while the group will take on losses of up to $50 million.

An ongoing risk assessment programme has been put in place to examine areas of concern for Maersk on a yearly basis.

In 2014 its focus has been the security situation at oil assets in West Africa and how to mitigate the threat of piracy, according to the group.

A major study has also been launched into the risk picture surrounding the new breed of mega vessels entering Maersk Line’s fleet.

Subscribe advert
Advertisement
Get in touch
News
More sections
Black Knight Media