Marine underwriters have no choice but to accept that abnormally large-loss events will occur with regularity, International Union of Marine Insurance (IUMI) President Dieter Berg says.

They need to adapt in order to manage the new risk landscape effectively, he told delegates at last week’s IUMI annual conference in Cape Town.

The billions of dollars in insured losses from last year’s string of hurricanes and other disasters in recent years such as the Tianjin port explosion are proof that “once unthinkable” risks are no longer unusual.

“Growing accumulation of risks at sea and ashore is of increasing concern,” Mr Berg said. “By identifying, monitoring, reacting and being innovative we can manage the unthinkable.”

Climate change, the long-lasting fallout of Brexit on the global economy and the rise of protectionism will also impact the risk landscape.

“The political landscape is also changing with an increase in sanctions and disruptions to trade agreements,” Mr Berg said.

“Certain regimes are entering trade wars that has led to increased protectionism. The impending Brexit is causing instability within the Eurozone and is also likely to impact our industry.”