The Association of Pacific Ports is pleased to welcome Harman Kemp North America Limited (HKNAL) as its newest Associate Member. As an independent Lloyd’s broker specializing in Excess and Surplus insurance (i.e., a form of insurance that covers businesses with high risk or an adverse loss history), HKNAL is well-positioned for the port and terminal market. “We’re always happy to provide guidance for ports and terminals who require assistance in managing the complexities of insurance coverage,” said Alan Rixon, HKNAL’s Head of International Department. “We have built a strong reputation over 30-plus years of business in the marketplace, managing general agencies and wholesale brokers in the U.S., Canada, New Zealand, and Pacific Islands, including Guam, Australia, and Saipan.”
Representing HKNAL with the APP, Rixon’s extensive experience will serve members well. He has worked in insurance in both U.K. Retail and London Market Wholesale insurance and has enjoyed a variety of roles encompassing the production of business, Insurance Broking start- ups and Management of both Retail and Lloyd’s Insurance Brokers. He joined Harman Kemp in April 2018 forming the International Department following the sale of another Lloyd’s broker where he was Managing Director of the Non Marine division and shareholder. With his long career in insurance and face to face contact with clients around the World, he brings to Harman Kemp experience across many disciplines both Non Marine and Marine. He is an Associate of the Chartered Insurance Institute and a member of the Institute of Risk Management.
Drawing on Rixon’s knowledge, we asked him to identify the issues and trends of most importance for the port community. “Cyber security is a huge problem,” he said. “The potential aggregation of risk is significant and it’s making life difficult for brokers to find cyber coverage in the market.” He pointed to the Ukraine/Russia conflict as an example of the complexity of risk, as well as the potential threat of ransomware and whether organizations have taken appropriate steps to ensure security. “Underwriters are asking for very detailed information before agreeing to provide coverage – for example, double-security checks with passcodes issued by phone, and proper authorizations are becoming essential.”
Another area of exposure that causes concern for insurers is in storage of hazardous goods on port lands. “The explosion in Lebanon in 2020 where a large amount of ammonium nitrate was stored at the Port of Beirut estimated to have caused over a US$1.5 billion insured property loss and resulted in at least 218 deaths and over 7,000 injuries. The market had no control over what was being stored there. I know a number of industry underwriters changed their perceptions of ports and terminals and the risks involved in what it being stored.”
Weather-related events are an additional source of risk. “Climate change has increasingly become a source of greater exposures, hence higher premiums” said Rixon, adding that, areas in the Pacific have always been known for Earthquakes and Windstorms.
As far as rates are concerned, the market has been increasing like everything else year-over-year, but Rixon felt they were starting to flatten out a bit. “Some areas that have seen double-digit increases for the last few years will start to see smaller increases more in keeping with past practices.”
Handling business in a number of different ways – e.g., ‘in-house binding authorities’, lineslips and limited binding authorities, and open market – HKNAL has been very successful in securing terms for a variety of different perils. Using ISO wordings for standard property perils, and London forms for other perils such as earthquake, flood, or wind, HKNAL will also use individual wordings that can be tailored to suit the individual risk. “If you’re unsure of whether we would consider an account – whether due to its size, class, location, or loss history – contact us. We’re always interested in speaking with ports and terminals to find out how HKNAL can provide assistance.”
For more information about Harman Kemp North America, visit www.hknal.com.