Reducing storm damage risk

Analysis of the insurer’s claims over the past three years has shown that the maritime sector accounts for 65% of reported claims and that cargo in particular is vulnerable to damage caused by flooding.

“The associated losses of such incidents can be far reaching. Water is unforgiving and has the ability to penetrate and cause significant damage,” said TT Club’s risk management director, Peregrine Storrs-Fox.

“Flood water is inevitably dirty, increasing damage and in many instances creating health challenging situations. Extreme weather events can be challenging to predict but operators of warehouses, terminals and port areas need to keep ‘fresh’ their assessment of the changing risk profile in relation to climate experience,” he added.

TT notes that the understanding of meteorological trends is maturing and the capability to monitor, record and predict weather patterns will continue to develop. This understanding will not physically protect property, equipment and operations but, when used as part of risk assessment, it should inform operational decision-making.

The insurer’s analysis also found that 65% of cargo damage incidents are attributable in part to the way that goods are packed within a container or cargo transport unit (CTU). Many claims therefore can be avoided with the correct packing processes. Guidance can be found in the CTU Code and Container Packing Checklist published by the Cargo Integrity Group.