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neers will actively work with both the broker and their customers to identify areas of the customer’s business that can be strengthened,” he says. “This helps to build strong, long-term partnerships between us, the brokers and their customers, based on a common understanding of the risk the customer faces and their marine coverage requirements.”
Shifting with the tides Given the influx of new entrants to the field and the continually changing state of the insurance market, Zurich continually reviews its marine lineup to ensure it’s offering the most relevant products.
Sailing into the future Butchart sees a variety of changes ahead for the marine insurance industry; some are reflective of social change, while others are simply challenges inherent to the industry. One example in the former category is coal. Despite the capacity in the Australian market, many insurers are now taking a strong stance on the use of thermal or ‘dirty’ coal, applying enhanced risk screening on new or existing clients to decide whether they will offer insurance to companies with exposure to these industries. Zurich has been an industry leader in this space. “We’re seeing a shift towards renewable
“Given the complexity that often exists in the marine insurance sector, it’s important an insurer can be flexible and tailor their offering to suit the customer’s needs” James Butchart, Zurich Australia “We’re committed to underwriting through the market cycle,” Butchart says. “This allows our customers to plan effectively for their own insurance costs, which is essential for the small business sector.” In practical terms, this means Zurich works to remain consistent in its approach to pricing. Additionally, Butchart points to the organisation’s keen understanding of the importance of an effective claims service. “We were recently recognised at the Insurance Business Australia Awards as the General Insurer Claims Team of the Year,” he says, “so we understand the importance of an effective, experienced and service-focused claims team to assist our marine customers when they need it most.”
energy sources, and the marine market is evolving to offer cargo solutions to renewable energy projects, such as wind and solar farms,” Butchart says. In terms of upcoming challenges, Butchart also believes that the tightening general property market will have an influence on the marine space in the next 12 to 18 months. “We’ ll experience the movement of harder-to-place components, such as stock throughput and static risks, into the marine market,” he predicts. Additionally, the London market has been contracting over the last year and a half, and a number of Lloyd’s syndicates have withdrawn from the marine market altogether. “A significant amount of Australian
WHO IS JAMES BUTCHART?
James Butchart joined Zurich in 2012 as national manager of marine hull insurance and has since gone on to fulfil a variety of other roles within the organisation. Today, he acts as a commercial manager, overseeing the organisation’s various marine insurance products. With more than 21 years of experience in the insurance industry, Butchart has marked himself out as an expert within the field.
marine business is placed in the London market, and we’ve recently seen this return onshore,” Butchart says. “This is good news for the local marine market, as it shows we have the capability and capacity to successfully underwrite such risks here in Australia.” However, he also notes that marine underwriters shouldn’t simply strive to be seen as a cheaper alternative to the property market. The increase in the number of underwriting agencies, coupled with international insurers trying to get a foothold in the local marine
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