Tagged: container leasing, credit insurance, trade

In the face of mounting losses, insurers in the Marine market have recently been withdrawing insurance that protects container leasing companies against the insolvency or default of their shipping company clients. However, for several years FP Marine Risks has been successfully arranging an alternative product that meets the needs of container lessors whilst being more competitively priced.

Container leasing companies are specialized, capital intensive and often highly-geared operations. For many years, they have relied on a handful of insurers in the Marine market to provide the insurance they need to satisfy the requirements of bankers and financiers. One by one, insurers have been pulling out of this sector because of the increased losses and the uncertain environment in which shipping companies are currently operating. As a result, some container lessors are facing difficulties in arranging or maintaining finance facilities.

However, by accessing the Credit Insurance market, we have been able to arrange a more focused product in a form familiar to financiers and directly related to the Lessor’s actual receivables. It offers an effective vehicle for risk transfer and is generally more cost-effective than the standard marine policy.

If you are interested in learning more about this insurance, please speak to one of our Trade brokers who can provide you with all the necessary information.

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