The meeting focused on the impact of marine insurance costs on navigation in the Red Sea region and explored mechanisms for future cooperation to ensure accurate risk assessment.
As part of its efforts to consolidate its position as a vital artery for global trade and in continuation of its commitment to effective engagement with clients, international maritime organizations, and concerned entities, the Suez Canal Authority (SCA) held an extensive meeting with the International Union of Marine Insurance (IUMI). The meeting was attended by Mr. Frederic Denefle, President of IUMI, Mr. Lars Lange, Secretary General of IUMI, Mr. Mohamed Hassan Farghaly, Managing Director of Suez Canal Insurance Company, and several members of the SCA Board of Directors, at the SCA's Irshad Building in Ismailia.
The meeting comes within the framework of the Authority's commitment to strengthening collaborative ties with key global players in the fields of maritime navigation and marine insurance, and to stay informed on global developments affecting this critical sector. It also aimed to assess the implications of regional security conditions in the Red Sea on marine insurance costs imposed on transiting vessels.
During the meeting, both parties reviewed major challenges and opportunities facing the marine insurance market on the regional level, particularly in light of recent positive indicators in the Red Sea. The discussion also covered future cooperation frameworks for enhancing risk assessment methodologies.
The meeting also reviewed the proactive security and safety measures taken by the Suez Canal Authority to maintain safe and efficient navigation.
On its part, the SCA reiterated its unwavering commitment to ensuring the highest levels of navigational safety and providing a safe navigational environment, as evidenced by recent navigational safety statistics indicating the incline of marine safety rates and decline of marine emergencies through the Canal. In 2023, the Suez Canal recorded a maritime emergency rate of only 0.06%, an exceptionally low figure given the record-high traffic volume of 26,434 transiting vessels, the highest annual figure in the Canal's history.
SCA representatives highlighted the Authority's commitment to enhancing the safety factor for the Canal’s transiting vessels by continuing its efforts to develop the Canal's infrastructure. The most recent project, the Southern Sector Development Project, has increased navigational safety factor by 28% through reducing the intensity of water currents and increasing the Canal’s width, allowing for greater vessel maneuvering capability. Also, the SCA started providing a comprehensive package of navigational services that help create safer environment for transiting vessels.
Moreover, the SCA is looking forward to promote communication and exchange expertise with IUMI, given its pivotal role in regulating and developing the global marine insurance sector, as well as to work jointly on risk mitigation and the provision of innovative insurance solutions that serve the interests of the maritime transport industry.
On his part, Mr. Frédéric Denèfle, President of IUMI, praised the efforts exerted by the Suez Canal Authority to maintain the efficiency and safety of navigation through the Canal, and the measures implemented according to an integrated system to increase the margin of maritime safety. He emphasized that the Suez Canal will remain a vital and indispensable artery for global trade despite all challenges.
He added that discussions with the SCA included deliberating on common challenges and risk assessment criteria, in addition to examining the impact of geopolitical developments in the region on marine insurance, and ways to promote cooperation between both parties to contribute to building a more resilient marine insurance sector that is responsive to global changes.
On the same note, Mr. Lars Lange, Secretary General of IUMI, stressed the significance of the Suez Canal's strategic role in the sustainability of global supply chains, lauding the continuous development of services provided by the SCA, which enhances its role in facing future challenges.
Lange also expressed his anticipation of furthering future cooperation with the SCA through the exchange of data and information related to maritime risks, allowing for an accurate risk assessment and the development of more effective insurance solutions that support the growth of safe maritime trade.
At the conclusion of the meeting, both parties have agreed to promote direct communication to discuss developments in the Red Sea region and reach optimal solutions that contribute to restoring stability to global supply chains.
It's worthy of mention that the International Union of Marine Insurance (IUMI) is a global body founded in 1874. It represents and manages the interests of marine insurance and reinsurance companies worldwide. Its goal is to continuously raise professional standards in the field of marine insurance by providing timely statistical and specialized information on maritime risks, providing education, insights, and guidance, in addition to monitoring relevant legislative and regulatory developments, and representing the industry in international forums before governmental bodies and global organizations concerned with maritime transport.