The 2023 Cefor year in review
Modern and up-to-date insurance conditions
The Nordic Plan
Based on the all risks principle, the Nordic Marine Insurance Plan (‘the Plan’) is recognized as a fair and balanced set of conditions for protecting shipowners’ interests through a comprehensive and coordinated solution for all standard non-P&I marine and offshore insurances. The Plan is tailor-made for the well-known Nordic claims handling model. Many clients around the world favour this service model because of the active support and cooperation a Nordic claims leader offers to shipowners.
The Plan is regularly updated to offer clarity and certainty. All amendments are drafted and agreed by a committee with strong representation from Nordic shipowners, often supported by their Nordic brokers. This ensures a fair and balanced approach, focusing on the practical needs of the insured and avoiding any gaps in cover.
The Plan is published on nordicplan.org, with the latest version uploaded to the Nordic Plan App for smartphones and tablets. Translations of Version 2023 into three Nordic languages were made available in the reporting year. Printed versions, guidance notes, and an introductory brochure are also available. A comparison between the Plan and the Institute Time Clauses – Hulls (ITCH 83) is published on the Cefor website .
The next version of the Nordic Plan will be Version 2027, which is due for completion by 1 October 2026. Deadline for suggested amendments from the signatory parties is 1 June 2025, and work commenced in the reporting year both within the Cefor Plan Revision Forum and some of the other forums to prepare for the next version.
Nordic Floating Windfarms Wording
A Nordic Floating Windfarms agreement was signed between Cefor, the four Nordic shipowners’ associations and Equinor on 1 September 2023. A financial agreement between Cefor and five Cefor members was signed on the same date. Work subsequently commenced on the development of possible standard conditions for the construction & installation phase and for the operation phase of floating windfarms, using Part One of the Plan as a basis.
Small craft clauses
List of regulations in Appendix A to the conditions for commercial vessels less than 15 metres long (Cefor Form 280) together with some other slight amendments were updated and subsequently published on 6 December 2023.
Leading provider of statistics
Cefor and its members are constantly striving to further enhance the quality of the comprehensive and up-to-date ocean and coastal hull data compiled in the Nordic Marine Insurance Statistics (NoMIS) database.
Extensive NoMIS reports for ocean and coastal hull claims and portfolio trends are published bi-annually on the Cefor website. The 2023 publications, based on data at year-end 2022, paid special attention to the container vessel segment and included a special analysis of CO2 emissions of the fleet covered by Cefor members. The analysis gave an insight into how the alignment between actual vessel emissions and the trajectories towards CO2 emission reduction differ by vessel type, age and vessel activity reflected by the distance sailed. The hull trends in the context of the trade and shipping environment were explained in more detail by Cefor’s Analyst/Actuary in a webinar in April 2023. In August 2023, the half-year report on hull claims trends as of June was published. The 2023 NoMIS ocean and coastal hull and portfolio trends per year-end are presented in separate reports.
To maintain the high level of data quality, all NoMIS members carry out annual checks on their own reported data quality.
Cefor also plays a vital role on the Facts and Figures Committee of the International Union of Marine Insurance (IUMI). In 2023, this included Astrid Seltmann’s responsibility for compiling data, with the ‘Global Marine Insurance Report’ presented in Edinburgh at the 2023 IUMI Conference in September.
Building competence
The marine insurance industry is highly specialized. Relevant, practical learning is offered by and for the industry through Cefor. The administration plays a vital role in delivering high-quality marine insurance training, which is in great demand from the industry. Course contents in the Cefor Academy programme are designed in cooperation with the Association’s members, who contribute lecturers, examiners, and other know-how to make this training the most highly rated of its kind in the Nordic region.
Cefor Academy
The comprehensive Nordic Marine Insurance Education Programme is designed to give students a good general understanding of all relevant aspects of marine insurance. The part-time Cefor Academy programme is an integral part of the training for marine insurance professionals in the Nordic market. On completion, a certificate is issued to document the student’s understanding of relevant terms and conditions as well as the basic principles behind them. Experts from Cefor member companies and a Norwegian law firm serve as lecturers during the six sessions that take place in three Scandinavian countries.
31 students received their final certificate of completion in 2023.
Cefor Academy received a high number of applicants to the 2023-2024 programme, and in August 2023, a record number of students, 35 in total, met for their first session.
Webinars
Cefor organised three public webinars in 2023. Maritime casualty webinars were held 10 May and 13 June with Herman Steen of Wikborg & Rein and Nina Hanevold-Sandvik of Skuld as presenters. The 2022 hull claims trends were presented by Astrid Seltmann in a webinar 18 April 2023.
Six additional webinars were organised by the forums for members of the Association with the following topics: remote controlled vessels (Massterly), sanctions (Wikborg Rein & Reed Smith), training of crew & lithium-ion battery fires (OilComp), onboard carbon capture and storage (Langh Tech), and EU competition law in relation to marine insurance (Thommessen).
Cefor Learning Design & CPD guidelines
Under the EU Insurance Distribution Directive (IDD) and most of its transpositions, employees working with the distribution of insurance products are required to undergo 15 hours of relevant Continuing Professional Development (CPD) training every year. In Norway, only CPD training by authorized providers such as educational institutions and pre-approved trade associations is allowed. The requirement came into force in Norway from 2023.
Cefor is approved as a provider of CPD training for and on behalf of its Members by the Financial Supervisory Authority in Norway. The Learning Design/Curriculum and Member Guidelines for CPD training were reviewed by the Board on 7 December 2023.
Influencing framework conditions
The overall objective of Cefor’s framework-related activities is to promote legislation and industrial policies that contribute to a sustainable ocean industry and represent the members’ common interests in the field of marine insurance.
To operate efficiently and provide a level playing field, international marine insurance and shipping industries depend on a global regulatory framework. Cefor is a strong supporter of international regulation of what is essentially a global industry, as opposed to regional or domestic regulation.
At an international level, most of the industry-related issues are dealt with through Cefor’s membership of the International Union of Marine Insurance (IUMI). A list of current issues from IUMI’s Policy Forum is regularly updated and published by IUMI and on the Cefor website .
The following were some of the most important issues for Cefor in the reporting year:
Safe delivery of IMO’s GHG strategy
In July 2023, the International Maritime Organization (IMO) revised its strategy on the reduction of greenhouse gas (GHG) emissions from vessels with a commitment to phasing GHG emissions out by 2050. In February 2023, IUMI co-sponsored a proposal for a new output at the IMO to undertake a regulatory assessment of safety aspects associated with reducing GHG emissions from vessels in line with the Organization’s strategy and to develop a road map to support the safe delivery of this strategy. The proposal was agreed by the IMO’s Maritime Safety Committee (MSC) in June 2023.
To support the owners in their transition to new and greener fuels and the risks they carry, Cefor has facilitated knowledge-sharing between our members and owners, class, engine manufacturers and other experts. The Association is also arguing for new standards and regulations to be developed for the protection of crew, the oceans and property.
Maritime Autonomous Surface Ships (MASS)
Regulatory considerations on Maritime Autonomous Surface Ships (MASS) are ongoing at the IMO, with an agreement to consider this in a holistic manner through the development of a goal-based instrument (MASS Code).
Non-SOLAS vessels in polar waters
Cefor has through IUMI argued for the urgent consideration of a mandatory instrument for non-SOLAS vessels operating in polar waters. In June 2023, MSC adopted amendments to SOLAS Chapter XIV together with amendments to the Polar Code to mandate safety measures for these vessels. The amendments will enter into force 1 January 2026.
Fires on board container vessels
Concerns have been raised by Cefor and IUMI about fires in the cargo on board container vessels. In May 2021, MSC agreed on a new output to consider fire detection and firefighting in view of SOLAS amendments for new vessels from 2028. A Formal Safety Assessment (FSA) study (CARGOSAFE) was presented by the European Maritime Safety Agency (EMSA) in February 2023, and is currently being reviewed by an expert group. Further consideration of possible regulatory amendments will be on the agenda of the IMO Sub-Committee of Ship Systems and Equipment (SSE) in March 2024.
Loss of containers
In February 2023, IUMI co-sponsored a paper to MSC, proposing a new output on prevention of loss of containers at sea. The proposal was agreed by the Committee in June 2023, and subsequently allocated to the Sub-Committee on Carriage of Cargoes & Containers (CCC). The issue was also raised in an annual meeting between IACS and IUMI in June 2022, and IACS is currently developing new unified requirements for lashing software and the scope of approval and certification of lashing systems as well as a new survey regime.
Electric vehicles
The transport and charging of electric vehicles on board vessels is an increasing concern, and Cefor is pushing for urgently needed guidelines to fill a regulatory gap related to this new risk. The Technical Forum was also involved in the LASH FIRE project, an international research project related to fires and alternative fuelled vehicles (AFVs), that was completed in August 2023. In June 2023, the Technical Forum further agreed to engage in a new research project headed by Swedish research institute RISE on the use of CO2 on electric vehicles fires on board car carriers. The project, named COFFEE, was granted EU funding in November 2023, and Martti Simojoki (Alandia and member of the Technical Forum) was subsequently nominated to represent Cefor in the reference group.
In April 2022, MSC 105 agreed to a new output on the evaluation of the adequacy of fire protection, detection and extinction arrangements in vehicle, special category and ro-ro spaces in order to reduce the fire risk of vessels carrying new energy vehicles. The output will also include considerations of the charging of electric vehicles on board vessels. Work will commence in March 2024, but SOLAS amendments are not expected to enter into force before 1 January 2032.
4-year rule premium
Norwegian insurers are today prohibited from competing with other markets to assist in the transition towards renewable energies through builder’s risks insurance to large projects such as floating windfarms. The reason for this is a clause in the Norwegian Insurance Activities Act (Forsikrings-virksomhetsloven) that limits the binding period of premiums to four years. In a report commissioned by NHC, Gard and Equinor Insurance, the Scandinavian Institute of Maritime Law (NiFS) has documented that there is no similar legislation in other relevant countries. The report also deliberates on the background for this regulation and later developments that make the restriction obsolete under today’s Solvency II regime. Cefor and Equinor met with the Norwegian Ministry of Finance in January 2023, and as a follow-up of our request to consider removing this restriction the Financial Supervisory Authority of Norway was instructed to prepare a proposal to amend this rule by mid December 2023.
Limitation Fund – Norwegian consultation
In June 2023, the Norwegian authorities presented a proposal to amend how interests are to be considered when a Limitation Fund is established after an incident. The proposal is directly related to a verdict in the ‘Full City’ case. Cefor responded to the consultation in October 2023, and argued against the proposed amendments. Not only did the proposal go against established legal practice, but it would also create more uncertainty for the industry and systematically higher amounts to be paid. Should the authorities decide that an amendment is necessary, Cefor proposed to include the interest of all parties in a broader review of the maritime code.
Norwegian State war risks insurance of cargo
Cefor has been involved in discussions with Norwegian authorities as part of their preparatory work to amend the regulation for Statens Varekrigsforsikring (the Norwegian State war risks insurance of cargo). Consultation on the suggested law amendments is expected in the first half of 2024.
Average Adjuster regulation – Norway
In June 2023, Cefor and the Norwegian Shipowners’ Association (NSA) met with the Norwegian Ministry of Justice and Public Security to argue for a continuation of publicly appointed average adjusters in Norway. The Ministry later agreed to keep this, and a follow-up meeting was held in November where Cefor and the NSA jointly provided input to a revised regulation that will set out the qualification requirements for this role. Regardless of this new regulation and as recommended by both Cefor and the NSA, the Ministry formally appointed Andreas Nesheim as Average Adjuster in December 2023.
Cefor forums
A great many of Cefor’s activities take place within the member forums. While each forum has its own area of responsibility and focus, additional value is generated from cross-forum consultation and coordination.
Facilitated by digital meeting tools in combination with in-person meetings, the forums remained very active with a total of 29 meetings in the reporting year. Ad hoc working groups were also formed to deal with special issues such as sanctions, floating windfarms, Nordic Plan webinars, compliance, and technical solution for the NoMIS database.
To ensure compliance with all relevant competition law regulations within all Cefor forums, working groups and the Board, the Association’s Competition Law Statement and Guidelines are regularly discussed and communicated to all appointed officials.
More than 90 member representatives are involved in the nine Cefor member forums that were active in 2023: Cargo Forum, Claims Forum, Coastal & Fishing Vessels Forum, Compliance Forum, Offshore Energy Forum, Plan Revision Forum, Statistics Forum, Sustainability Forum, and Technical Forum.
Contributing to a sustainable ocean industry is an overarching purpose of all activities within Cefor and its member forums. Through the establishment of a Sustainability Forum in June 2023, sustainability has been further emphasized as an integral part of the Association’s activities. The new Forum has an overarching role and works with all other forums and the Board in an advisory role to drive change.