To mainstream and to Not mainstream? Yes! (1 / 2)

29/09/2022
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For Your Benefit!

To mainstream and to Not mainstream? Yes! (1 / 2)

It takes mainstream experts to know how mainstream can still leave an owner with many potentially painful exposures despite providing hugely valuable protection.

Is that a fair statement? We think so.

A shipowner will seldom hear his mainstream provider talk about the “not mainstream” exposures they leave him with, through exclusions and limitations. Mind you, many of them make perfectly good sense.

It makes sense, whether your core function is to cover repairs’ costs after a physical damage or the costly 3rd party liabilities stemming from it, to focus on your core function and process the incidents as efficiently and quickly as possible.

“Not mainstream” exclusions and limitations are a door towards a risk that is much less predictable than the “mainstream” risks covered under the main policy.

"Yes, because mainstream insurance is not a tool to protect against the unforeseeable, only the fortuitous. There is the nuance."

Fortuitous is an event that, based on the main underwriting assessment criteria, an insurer knows it will happen at some point, but simply does not when.

Unforeseeable is more difficult to identify. It can occur, but also not. It can be costly, but caused by a small incident, and vice versa, and that element of risk is in the exclusions in the mainstream policies.

You got it,

it often is the riskiest part of mainstream… and a real headache!

"So…? …so, 2/2 to follow, here!"