Understanding risk, sharing knowledge and staying at the forefront of the latest developments are key to assisting members, clients, and the wider industry, in embracing a greener tomorrow today. It's a demanding task, but Krester Krøger Kjær, Senior Vice President and Head of Skuld Copenhagen, couldn't be more passionate about embracing the challenge and enabling change.
"It can be a little frustrating."
If Krester Kjær wasn't such a gentleman, you get the feeling his language might be a little more 'colourful' here.
"Some people assume that because we're talking about alternative fuels, green technology and new solutions, there's automatically more risk involved. But that's simply not the case," he stresses.
"We've had, and continue to have, excellent experiences with members supporting and adopting decarbonisation – and that ranges from insuring battery-powered ferries to methanol-fuelled containerships, and ships using transition fuels like LNG and biofuel, through to vessels with carbon-reducing technologies on board like rotor sails.
"The real risk is in resisting the transition," he smiles, "and that's not something we're interested in doing here at Skuld!"
Collaborating for change
It quickly becomes clear we've hit on a subject close to Krester's heart.
The trained lawyer and business unit leader, a veteran of some 12 years at Skuld, is a passionate voice for sustainable shipping. Krester is engaged with the Maersk Mc-Kinney Møller Center for Zero Carbon Shipping in his home city, where Skuld is a Mission Ambassador. He is also a representative on the BIMCO Documentary Committee, soon to adopt a "carbon clause" and the FuelEU Maritime Clause. Furthermore, he is a member of a BIMCO sub-committee drafting a Carbon Capture Storage Charter Party and is proud of being in Skuld that works across industry institutions and initiatives (such as the International Group of P&I Clubs (IG), the Nordic Association of Marine Insurers (Cefor) and the Poseidon Principles for Marine Insurance (PPMI). Krester freely admits to "absolutely loving" discussing how to piece together shipping's big decarbonisation puzzle with members, clients, colleagues and other key stakeholders.
Evolutionary steps
"There's been a tangible change in the past decade," he notes. "We've gone from tentatively talking about solutions to active involvement in supporting the industry transition. There are a lot of member vessels out there now with cutting-edge technology tailored to reduce emissions, operated by rightfully proud shipowners. And this is just the start.
"This is an evolution," Krester points out, "in the same way as we moved from sails to steam to bunker oil, we're voyaging towards decarbonisation. We, and our members, have a vital role to play in that."
A role that Krester and, as he makes clear, his colleagues are fully invested in.
Investing in interest
Krester sees personal, societal and business development through the same green glasses.
He believes individuals, Skuld and the industry will go from strength to strength by embracing sustainability and soaking up as much knowledge, and thus pursue as much opportunity, as possible.
He says the number of "interest hours" (in other words free time) he and his colleagues in Skuld spend on deep dives into the latest technology, regulations and developments is indicative of their passion, purpose and professionalism.
"There's a huge drive," he comments. "We find this interesting, we find this exciting, and we know this is important.
"I see it in my colleagues every day – the way they discuss hot topics, actively seek out courses related to decarbonisation they can attend, and constantly look to share and facilitate knowledge. It's a personal passion. And, of course, that has business benefits."
Added value expertise
One of the principal advantages is the rising base level of understanding within Skuld. That empowers smarter, more informed decision-making.
Krester notes, with a nod back to his original frustration, that there has to be an in-depth knowledge of new fuels, solutions and technologies to ensure accurate risk modelling.
"Having the expertise to understand the risk is absolutely fundamental for our underwriters to setting the right premium and terms," he says, "delivering a tailored package that is fit for purpose for everyone. There's a real danger of inadequate pricing if you don't possess adequate knowledge, and that can create another barrier on what is already a challenging path to decarbonisation."
The passion and purpose of Krester and his colleagues set a virtuous circle in motion. The growing level of expertise attracts member business that delivers more knowledge, with operational and business experience, that again helps attract further contracts. This is a clear benefit for the advisory side of Skuld.
Supporting strength
"For example," Krester explains, "if we have a member come to us to ask us about rotor sails, we can share the knowledge we've acquired. Or with biofuels, a key transition fuel, we can advise on the approval procedure to make it insurable, which can be very complex, or give input on proper bunker handling procedure, which may vary from conventional fuels. Bunkering disputes with biofuel or LNG can be very different from HFO disputes, so there's a need for an expert claims advisory partner there too.
"These kinds of technologies can make real, impactful gains for owners – both environmentally and commercially – and we can help them achieve those in safe, insurable and compliant ways."
This mention of compliance brings regulations into the conversational mix. These, Krester opines, are increasingly complex, leading to additional member needs.
Communicating purpose
He notes: "If we take two of the most recent examples, the EU Emissions Trading System (ETS) and FuelEU Maritime, into consideration, these are extensive, complicated frameworks creating new demands for both owners and charter parties. So, our members need assistance navigating that evolving landscape, particularly with regard to clauses, which we and the IG Clubs work extensively on e.g. with BIMCO, as well as in other new trades which could be charter party agreements on carbon capture."
It's also helpful, he adds, to have a dialogue around the purpose of the regulations, creating greater understanding and breaking down barriers to adoption.
"Each new regulation is created with the best intentions," Krester states, "but these can get lost in the resulting storm of adoption. So, it can be helpful to clarify these intentions and purposes and communicate them to members. For example, FuelEU is intended to accelerate the supply and demand for green fuel. If no ships buy green fuel, there's no market, but if there's a clear incentive to do so the supply side has to respond. Do nothing and nothing will happen."
Dedicated to development
Doing nothing is clearly not an option for Krester.
He and his colleagues are committed to building internal knowledge, data and understanding, which can then be shared with members, industry bodies, and through collaborative initiatives to help lay a stronger foundation for a sustainable shipping future.
"The speed of developments – from regulations to technology, commodities, new cargoes and next generation blue and green fuels - requires constant awareness and effort," Krester says. "But it is a privilege to be at the front line of this transition, playing our part in helping our members and our industry embrace change and reap rewards.
"We are lucky in Skuld to be such an established player, giving us the base and resources to devote so much time to gathering knowledge while having the trusted partnerships with members and clients where that expertise can deliver true value."
He concludes, without a bit of frustration, that there's "still a way to go on the voyage to sustainability," but that "Skuld is on board for the long haul."
Krester, it seems, is enjoying the journey.