The Poseidon Principles – what do they mean for our Members and clients?
Gard recently signed up to the Poseidon Principles for Marine Insurance (PPMI). Here is a brief outline of what that means for our Members and clients.
How does the PPMI affect Gard’s Members and clients?
The PPMI will apply to vessels that fall under the purview of IMO DCS where the Hull & Machinery (H&M) claims leader is a signatory to the PPMI. In other words, vessels insured with Gard for other products (such as P&I, Loss of Hire (LoH), Increased Value (IV), etc.), and do not have their H&M insurance claims lead with Gard or a fellow signatory, are not affected by this initiative.
The PPMI will come into effect once there are eight signatories. We of course hope and expect that to happen soon, but for the time being there are only six signatories.
What happens when the PPMI comes into effect?
Once eight signatories have joined, the PPMI will formally come into effect. Gard will then seek to include a standard wording clause into all H&M policies where Gard or a fellow signatory has claims lead. The purpose of this clause will be to allow Gard to approach its clients for their IMO DCS submissions (CO2 emissions data), in order to fulfill our obligations under the PPMI.
For policies that are written before the formal date of effect, Gard will send a letter of consent serving the same purpose as the above-mentioned clause.
We will work hard to ensure that this process is as smooth and straightforward as possible for our clients. Among other things, we are working on a common reporting template to ease the reporting process for all parties involved.
What is the purpose of acquiring these data, how will they be used?
The data will be assessed and disclosed annually on an aggregate level, focusing not on individual clients or specific fleets, but on our H&M portfolio as a whole. We will not report who our clients are or the vessels in our portfolio, but exclusively the climate alignment of our overall portfolio. This initiative is not about targeting specific clients, but rather about working together and increasing industry transparency.