Negotiations arise when changing technical management
Tagged: shipowner, shipping, technical management
As some insurers become more conservative in their approach to risks, what might have been a simple request to agree to a change of technical management is fast becoming a more difficult negotiation.
One of the aspects an underwriter will consider when rating or accepting a risk is the identity of the technical manager and their specific experience with the vessel(s) in question.
Established names do not generally give rise to detailed probing. However, where technical managers are new or lack the necessary experience there is a clear desire for more background information.
This is by no means an insurmountable challenge, notwithstanding underwriters’ more risk-averse approach. However, additional and in-depth information on the proposed technical manager is necessary to achieve a smooth transition as far as the insurance is concerned.
The areas that insurers will want to focus on include the CVs of people involved in the vessel(s), their experience in technical management as a whole, the Company’s time in existence and the background to the change by owners. If there is a change of crew arranged by the technical managers as well, then additional information will be expected.
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