NorthStandard - Experts & Thought Leaders

NorthStandard has appointed Kate Kwiatkowska as its new Head of Sustainability to drive forward a key part of the marine insurer’s long-term strategy. Joining from Fintel plc, where she served as Head of ESG and Corporate Marketing, Kate will be responsible for engaging with NorthStandard members, brokers, employees, and other stakeholders, developing the role sustainability plays in overall strategy and reviewing the Club’s sustainability priorities on an ongoing basis. She will also establish metrics and reporting mechanisms for demonstrating progress over time. Kate's impressive track record “The Head of Sustainability plays a pivotal role at NorthStandard, coordinating, developing and driving the organisation’s strategy to ensure that we are operating responsibly and building an organisation that will support and protect our members not only today but for future generations,” said Ed Davies, Chief Strategy Officer, NorthStandard. “Kate has an impressive track record in pioneering strategic projects and implementing a sustainability strategy for an AIM-listed business in the retail financial services sector. This, coupled with her stakeholder engagement and data analysis skills, makes her an ideal fit for the position. Her appointment reflects NorthStandard’s continuing commitment to embedding sustainability across the organisation.” Kate’s career achievements Kate’s career achievements include winning ‘Woman of the Year – ESG’ award at ‘Professional Adviser Women in Financial Advice Awards’ in November 2024 and being selected as a finalist for several ESG and sustainability-related awards. She holds an MSc in Risk, Disaster and Environmental Management from the University of Huddersfield, and certifications including Leading Sustainable Corporations from the University of Oxford.

The UK is well positioned to lead the safe development and deployment of new nuclear power systems for commercial ships and Floating Nuclear Power Plants (FNPPs), according to a new report from CORE POWER, NorthStandard and Lloyd’s Register (LR). Technology company CORE POWER, global marine insurer NorthStandard and maritime professional services provider LR have jointly published Advanced Maritime Nuclear: A unique opportunity for the UK.  Deployment of small nuclear reactors The new paper sets out a policy framework for the UK Government to support the deployment The new paper sets out a policy framework for the UK Government to support the deployment of advanced small nuclear reactors on commercial ships and FNPPs. The Department for Transport should include nuclear-powered shipping and FNPPs in an updated Clean Maritime Plan (CMP) and long-term nuclear strategy, the report argues. Net zero by around 2050 Global shipping currently depends on fossil fuels for close to 99% of its energy consumption, but the International Maritime Organization (IMO) is aiming for its greenhouse gas (GHG) emissions to reach net zero by around 2050. However, alternative fuel options (including biodiesel, methanol, hydrogen and ammonia) face major cost, production, transportation and use challenges. Development of nuclear-powered shipping In the foreword to the paper, Lord Mountevans comments: “The UK has the skills, expertise, and history of innovation to lead the development of nuclear-powered shipping." "By leveraging our decades of experience with small reactors for the Royal Navy, we can decarbonise maritime transport, create jobs, and strengthen Britain’s position as a clean energy world power.” Advanced nuclear technologies in modular designs The Civil Nuclear Roadmap to 2050, published by the last government, envisaged nuclear technologies The UK pledged to triple nuclear energy generation capacity at COP 28. The Civil Nuclear Roadmap to 2050, published by the last government, envisaged nuclear technologies, from Advanced Small Modular Reactors (A-SMRs) to large-scale nuclear plants as part of the UK’s energy mix.  These new, safe and advanced nuclear technologies in modular designs, which allow for straightforward manufacturing and regulatory approval processes that enable dramatic energy efficiency gains for global shipping. Future nuclear operations NorthStandard’s participation in the new paper reflects the role commercial insurability will play in future nuclear operations in the civil maritime space, particularly to cover shipowners’ liability. Paul Jennings, Managing Director, NorthStandard, commented: “The ability to commercially insure nuclear-propelled ships will be vital to the success of bringing nuclear to maritime. It is important that governments understand the need for a civil marine nuclear liability convention within the framework of IMO and work towards creating an appropriate liability regime.” Shore power and expensive connections FNPPs used to alleviate the issues surrounding shore power and expensive connections With the right investments and policies, the UK can develop a multi-billion-pound industry according to the report. In addition to zero pollution, nuclear-powered ships would not rely on shore power in port and could even feed electricity into the grid. FNPPs could also be used to alleviate the issues surrounding shore power and expensive connections to the UK national grid. Energy effectiveness of shipping CORE POWER’s founder and CEO, Mikal Bøe, said: "History has shown that there has never been a great naval power that wasn't also a great maritime power. Maritime nuclear is the catalyst that can reverse the trajectory of the British shipping sector, creating unique competition to Chinese shipbuilding and ocean transport." "The UK has been at the centre of global shipping for centuries, and this report reinforces that maritime nuclear power is not only necessary to improve the energy effectiveness of shipping dramatically but also a £2.5 trillion economic opportunity. Over time, the cost of inaction will far outweigh the cost of being the champion in this rapidly emerging market.” Modern reactor designs and needs CORE POWER, NorthStandard and LR aim to expand potential role for safe nuclear technology Commenting on the launch of the research paper, Andy McKeran, LR’s Chief Commercial Officer, said: "As nuclear technology advances toward maritime applications including Floating Nuclear Power Plants, global regulatory alignment is crucial." "Existing frameworks must be updated to reflect modern reactor designs and operational needs." Safe and sustainable nuclear technology McKeran added: "The UK has the expertise to lead these efforts at the International Maritime Organization (IMO) and with the International Atomic Energy Agency (IAEA), setting the foundation for safe, insurable, and scalable nuclear-powered shipping." Together, CORE POWER, NorthStandard and LR aim to expand on the potential role for safe and sustainable nuclear technology within the maritime industry at the next London International Shipping Week (LISW) in September 2025.

NorthStandard has finished a challenging year for global marine insurance, reporting an increase in poolable tonnage and continuing progress towards meeting its strategic goals. Marine insurers worldwide saw a rise in the number of large claims in the year ending 20 February, alongside compromised Asia-Europe ship routeing choices and a growing number of ‘shadow’ tankers seeking cover outside the International Group of P&I Clubs system. NorthStandard’s premium income Nevertheless, NorthStandard reported poolable tonnage of 270M GT at year-end, up from 260M GT at the same time last year, with growth continuing two years after the foundation of the club in 2023. NorthStandard’s premium income is also expected to increase to over US$870 million, compared to US$836 million in 2023-24. Despite volatile markets in the early weeks of 2025, the club’s full-year returns on investment are expected to be over 5%. Advantages of the mutual pooling system The ability to ride out turbulence proved especially useful in 2024-2025, with NorthStandard The ability to ride out turbulence proved especially useful in 2024-25, with NorthStandard entering four claims into the IG pool. “In years like these, shipping relies heavily on its top P&I providers, and the advantages of the mutual pooling system are evident to everyone,” said Thya Kathiravel, Chief Underwriting Officer at NorthStandard. “It is clear that 2024-25 has posed significant challenges for underwriting, as we are experiencing a predicted increase in high-value claims throughout the year.” Vessel-based loss prevention solutions Changing risks, inflationary pressures, and uncertainties in investment markets prompted NorthStandard to apply a 5% general increase across its blue water membership. In a year of strategic development, NorthStandard added to its pioneering Get Set! portfolio of vessel-based loss prevention solutions and invested locally in its office network worldwide. Its Sunderland Marine and Coastal & Inland teams also launched a new ‘one-stop’ shop product for smaller commercial vessels worldwide. New products and strategic initiatives In markets targeted for retail growth, the insurer entered several strategic alliances, including NIORD In markets targeted for commercial growth, the insurer entered several strategic partnerships, including NIORD in Norway.  Nick Wolfe, Chief of Specialty with NorthStandard, commented, "the new products and strategic initiatives are a valuable opportunity to expand NorthStandard’s reach in rapidly developing markets. By combining our extensive knowledge, experience, and technical expertise, we can better address the evolving needs of our members.” Global shipping challenges  “Despite strong headwinds, NorthStandard’s capital strength, diversified businesses and service excellence deliver resilience for market highs, lows and volatility,” commented Nick Jelley, Chief Financial Officer, NorthStandard. “Growing tonnage and revenues demonstrate that we continue to enjoy the support and confidence of our membership, with the reach, resources and robustness to tackle the challenges global shipping will face in the years ahead.”

The Dark Fleet refers to a network of vessels that operate outside of standard maritime regulations, often used to transport sanctioned goods such as oil. These shadowy vessels are also referred to by terms such as Parallel Fleet and/or Shadow, Gray or Ghost fleet. The terms are all manifestations of the same thing – ships that are owned, structured, and operated to avoid exposure to sanctions. Fleet of ships “In fact I would prefer that we use the term Parallel Fleet because it more accurately describes what it is,” says Mike Salthouse, Head of External Affairs, of NorthStandard, a Protection and Indemnity (P&I) insurer. “Specifically, it is a fleet of ships operating in parallel to mainstream shipping while avoiding use of service providers that are subject to sanctions legislation.” Modern shipping sanctions Sanctions were to be enforced not just against the sanctions-breaking vessel but also the services Modern shipping sanctions can be traced back to the introduction of the U.S. Comprehensive Iran Sanctions Accountability and Divestment Act 2010 or “CISADA”.  Under CISADA for the first time, sanctions were to be enforced not just against the sanctions-breaking vessel but also the services (for example insurance, class, flag, banks) that the vessel used. EU/G7 Coalition adopting sanctions As a result, all maritime service providers sought to distance themselves and introduce contractual termination clauses in their service contracts forcing such vessels to either trade without such services or to access them from non-sanctioning jurisdictions. This led immediately to the creation of mainly Iranian ships that could continue to carry cargoes subject to western economic sanctions – such as Iranian oil. However, the fleet has grown exponentially following the EU/G7 Coalition adopting sanctions targeting Russian shipping. Today the majority (but not all) of the Dark Fleet is engaged carrying Russian cargoes – but other trades include Iran, North Korea, and Venezuela. Protection of the marine environment Dark Fleet undermines transparent governance policies that ensure the welfare and safety “It might be that a removal of Russian sanctions would remove the need for such a fleet,” adds Salthouse. “But for so long as nations use maritime sanctions as a foreign policy tool, my own view is that the Dark Fleet phenomenon will continue to facilitate sanctioned trades.” The Dark Fleet undermines transparent governance policies that ensure the welfare and safety of those on board and the protection of the marine environment. In recent years, the safety of tankers has improved significantly. These improvements have been driven by factors such as greater operational oversight from the oil majors, younger double hull vessels, greater operational scrutiny, and more rigorous legislation. Safety has been prioritised over all else. Transport oil using ships and services “The commercial dynamics that apply to the Dark Fleet are very different,” says Salthouse. “The overwhelming commercial imperative is not safety but to transport oil using ships and services to which sanctions legislation does not apply. As such, the customer and regulatory oversight is much reduced.” The vessels used by the Dark Fleet also tend to be older. Even if it were possible to find shipyards that were prepared to build for use carrying sanctioned cargoes (and so risk secondary sanctions depriving them of access to western financial markets and insurers), the long build times mean that such ships would not become available for several years. As such, the vessels that comprise the Dark Fleet tend to be end-of-life and aged 15 years or older. Commercial reinsurance markets The insurers of the ship will likely have been unable to access commercial reinsurance markets used If and when an accident happens, the ability of the insurer to respond by using commercial salvors and pollution responders will be curtailed by sanctions legislation, and the insurers of the ship will likely have been unable to access commercial reinsurance markets commonly used to access the high levels of cover required to fully compensate victims. Sanctioning individual ships is an effective way of addressing the Dark Fleet because shipping that trades internationally invariably needs access to western financial and service markets, which a designation deprives them of. Collaboration with mainstream shipping EU/G7 Coalition States to date have designated over 100 vessels, but in practical terms, the Dark Fleet is much larger than this – somewhere in the region 600 to 1000 vessels – so more needs to be done, says Salthouse. Thought also needs to be given as to how to dispose of old designated tonnage (as designation will prevent scrapping) whilst at the same time addressing the supply side so that designated ships cannot simply be replaced. “That can only be achieved in collaboration with mainstream shipping which should be consulted and partner with governments to achieve their aim,” says Salthouse. Majority of shipowners and service Dark Fleet will thrive for so long as maritime sanctions are deployed by states as a means of foreign policy goals Without concerted state action delving with the existing fleet and its access to new ships, the Dark Fleet will thrive for so long as maritime sanctions are deployed by states as a means of achieving their foreign policy goals. The cost of compliance to mainstream shipping is huge. The vast majority of shipowners and service providers deploy significant resources to avoid inadvertently contravening applicable sanctions. EU/G7 Coalition partners should recognise that and work with the shipping industry to marginalise the commercial space served by the Parallel/Dark Fleet rather than simply imposing ever greater and more complex compliance requirements, comments Salthouse. Use of EU/G7 Coalition service In a majority of cases, the Parallel Fleet is not breaking any laws. With the exception of the UN sanctions programme directed at North Korea, the Parallel/Dark Fleet can trade perfectly lawfully. For example, it is not illegal for a Russian flagged ship, insured in Russia, classed in Russia and trading with non-EU/G7 Coalition partners to transport Russian oil sold above the price cap through international waters to non-EU/G7 Coalition states provided the trade does not make use of EU/G7 Coalition service providers. Use of established service providers The Parallel/Dark Fleet is bad for shipping and undermines EU/G7, and on occasions, UN sanctions programmes, says Salthouse. States cannot control a trade when the ships carrying the cargoes and the service providers involved are not subject to the jurisdiction of that State. Similarly, when ships sink and cause pollution, the whole shipping industry suffers by association, and the additional complexities involved in responding to a casualty that cannot make use of established service providers could make a bad situation much worse.