Decarbonisation, geopolitics and innovation reshape dry bulk risk

Head of shipowners GB Marine at Willis Towers Watson (WTW), Simon Lockwood outlined the challenges and opportunities reshaping the dry bulk sector during the International Bulk Shipping Conference in London in November 2024.

Speaking in the WTW auditorium opposite the famous Lloyd’s of London building in the heart of London’s maritime hub, Mr Lockwood highlighted the complex interplay of innovation, decarbonisation and geopolitics, describing them as “risk events” that demand careful navigation.

Reflecting on the historical foundations of the maritime insurance industry, Mr Lockwood emphasised the need for forward-looking strategies to address these emerging risks.

“As we see innovations in the [dry bulk] sector, challenges around decarbonisation, challenges around the geopolitics that affect shipping as well… all of those things are risk events,” he noted, adding unproven technologies associated with decarbonisation pathways also bring unique uncertainties.

Willis Towers Watson, a global insurance broker with roots in maritime risk management, plays a critical role in facilitating insurance for shipowners, charterers and cargo operators.

“We sit at the side of those individuals to facilitate insurances on behalf of them, in order for them to carry out the critical trade that is necessary to literally keep the lights turned on in the world,” Mr Lockwood explained.