Paratus Maritime Insurance Limited was the first in the market to launch of its bunker fuel price insurance product last year. It has now announced the first individual placements, in partnership with its distribution partners Gibson Shipbrokers and Price Forbes & Partners.
Paratus Maritime states that its parametric fuel price insurance products offer a risk management solution for industrial companies that consume large amounts of fuel. It highlights that the newly announced placements have delivered “cost effective and easy to use protection to shipping companies, some of whom were previously unable to access conventional hedging products from investment banks”.
Gus Majed, Group CEO and Founder, Paratus Group of Companies, in an interview earlier this year, had said that the catalyst for the development of a bunker price insurance product had the realisation that for many ship-owners, risk mitigation in the form of traditional hedging tools was not a panacea for their price exposure. Bunker price uncertainty and volatility surrounding the introduction of the IMO 0.50% sulphur cap in January last year and the subsequent impact of the pandemic on global energy demand and oil prices had confirmed this viewpoint.
In a recent statement, Majed stated, “Paratus is committed to providing innovative insurance solutions to protect our clients’ balance sheets from energy price risks. With the binding of the world’s first parametric fuel price insurance policies, we are proud to support our clients as they transition to cleaner energy, and as demand for fuel and freight rapidly rebounds.”
Paratus also, in its statement, flagged up it that it “intends to soon bind its first freight price policies”.