Risks and insurance in the maritime industry

Two-thirds of the Earth's surface is covered with water. This is one of the important reasons why maritime transportation is the oldest means of transportation. Ships, which are intercontinental bridges, contribute to meeting human needs and planned production with the huge loads they carry. Today, maritime transportation is cheaper than other types of transportation, making it economically and financially preferable for companies. The backbone of world trade is formed by maritime transport. Maritime transportation, which is a type of intercontinental transportation, can face many risks on the high seas. Many factors such as adverse weather conditions, piracy at sea, technical problems, fire, explosion, crash, health problems of seafarers, natural disasters, events that may occur in the port, commercial and financial risks can directly and indirectly affect the transportation sector in question. Insurance has emerged in order to protect the goods carried in maritime transportation, the ship, the seafarers, the environment and many other components against the risks that may occur, and to compensate for the damage incurred. Our country has a great commercial potential due to its location and being surrounded by seas on three sides. The fact that it is between Asia and Europe is an indication of this potential. Maritime transportation is divided into many sectors and contributes to the employment of our country. Sectors such as cruise tourism, shipbuilding, ship dismantling and ecotourism are the first ones that come to mind. Maritime transportation carries many risks due to its nature. Companies operating in maritime transportation can apply for insurance policies under the name of cargo insurance, hull and machinery equipment insurance, boat construction insurance and liability insurance in order to avoid possible damages. However, there are many insurance companies operating in our country. Although the beginning of insurance was in maritime transportation, today it has a wide area divided into many subsections such as earthquake insurance, vehicle insurance and life insurance. In this study, information about the situation, risks, legal regulations and insurance of the maritime transportation sector is included. Evaluations were made regarding the insurances made in the maritime field in our country between 2017 and 2021. During this period, it was observed that the insurance sector in Turkey was affected by the pandemic outbreak, which caused closures around the world. However, this impact did not last long, and it returned to its previous level very quickly due to the need for transportation services to transport the goods needed by the world. Insurance companies pay compensation to their customers who purchase policies covering damage caused by maritime accidents. However, after any maritime accident, the compensation rate paid by insurance companies may change. However, detailed examination of the maritime accident by insurance companies may change the compensation rates. Premium production of the Turkish insurance industry has increased continuously in the last four years. Especially in 2020, there was a significant increase in premium production due to the impact of the epidemic. This has been a positive indicator for the growth and development of the insurance industry.