Marijan Dželalija: Raising the Standards in Marine Insurance

Greco Group is a renowned international brokerage house with extensive experience in various insurance and reinsurance segments. The Croatian office of GrECo Specialty – Marine insurance in Poreč, specializing in boat insurance, is headed by Mr. Marijan Dželalija, whose many years of experience in the nautical sector make him an expert in developing custom solutions for boat owners and charter companies in the Mediterranean.

HOW IS THE CROATIAN OFFICE POSITIONED WITHIN THE GROUP?
GrECo Group has been operating for over 100 years in the field of risk management, finding specialized and individually tailored solutions for each client. They have offices in 69 locations in 21 countries, and the GrECo Specialty – Marine insurance office, the new and first specialized branch owned by GrECo Specialty GmbH, with headquarters in Poreč, will be their 70th office. GrECo Specialty is a special unit of the GrECo Group based in Vienna, specializing in risk management and insurance programs for special industries: aviation, energy, financial institutions, logistics and transport, reinsurance, etc. The Poreč office is their first fully specialized marine insurance office, which is rather new in the brokerage world in this region. GrECo Specialty is the first risk consultant and insurance broker to fully recognize the need for this niche product in Croatia and on the Adriatic. In addition to three other offices of GrECo Croatia (Zagreb, Rijeka and Osijek), the new branch in Poreč specializes exclusively in marine insurance, a field with great potential. Our vision is to offer a complete solution to boat owners in the Mediterranean. There are many challenges in that endeavor, from vessel locations, flags under which they sail, vessel ownership, navigation areas etc. Insurers' criteria for accepting under contract vessels that fall outside the ordinary have been becoming more rigorous. That's why we are here, experts who have been in this business for years, now with the support of the GrECo Group, the largest risk consultant and insurance and reinsurance broker in CEE&SEE.

HOW DOES GRECO CONTRIBUTE TO THE DEVELOPMENT OF BOAT AND MARINE INSURANCE IN CROATIA?
Our highly specialized service is focused, among other things, on raising the quality of the service itself in the marine insurance segment. Over the years, in the Croatian vessel insurance market awareness of the need to find quality insurance and policies that provide real protection against unforeseen damages and professional assistance and support when an accident occurs has significantly increased. Our contribution to education and transparency in communication with clients are the keys to success, and with this approach we raise our profile in the insurance and reinsurance market that is lacking quality and experts.

AS AN EXPERT WITH A LLOYD'S CERTIFICATE IN MARINE INSURANCE, HOW WOULD YOU ASSESS THE CURRENT STATE AND THE POTENTIAL OF THE MARINE INSURANCE MARKET IN CROATIA AND THE REGION?
The regional market is highly dynamic, with a significant number of agents and brokers operating in a traditional manner, maintaining long-term contacts and client portfolios. In the past, the process of finding solutions for clients was simpler, regardless of the location of the vessel, ownership structure or the registered flag. Today, circumstances require a significantly higher level of expertise and creativity in developing customized solutions for each individual vessel. The market potential is extremely large, and the number of vessels is continuously growing. There is a noticeable trend of accelerated fleet rejuvenation in the region. There is special potential in the segment of marine insurance, which is why we are pleased that GrECo Group has recognized Croatia as a key location. From our newly opened marine insurance office in Croatia, we will develop solutions for clients operating in Greece, Turkey and Albania to Poland, the Baltic and the Black Sea.

WHAT ARE THE BIGGEST CHALLENGES IN MARINE INSURANCE, ESPECIALLY CONSIDERING THE GROWTH OF THE CHARTER INDUSTRY AND THE INCREASE IN THE NUMBER OF YACHTS IN THE ADRIATIC?
One of the key challenges is certainly finding the optimal solution, but just as important is providing professional support and efficiently resolving claims in a manner that leaves all participants in the insurance chain satisfied; from the vessel owner, to the insurer, to us as professional intermediaries. Once these processes are clearly defined and established, the challenge that remains is ensuring the quality and speed of vessel repairs, as well as the cost of spare parts and service. That issue isn’t only present in Croatia, but also in the entire region, and even on a global level.

HOW DOES THE GLOBAL EXPERIENCE AND KNOW-HOW OF THE GRECO GROUP HELP IN PROVIDING CUSTOMIZED SOLUTIONS TO CROATIAN VESSEL OWNERS AND CHARTER COMPANIES?
The group employs experts in all areas of insurance, including, for example, financial lines insurance or liability insurance. Since quality insurance is necessarily interdisciplinary, our colleagues from different sectors and countries provide customized solutions to clients and provide the necessary support in case of damage. As GrECo Specialty, we are exactly what our name says we are: specialists in specific industries. Marine insurance is just one of them.

WHAT DO YOU CONSIDER TO BE THE KEY DIFFERENCES BETWEEN MARINE INSURANCE AND OTHER FORMS OF INSURANCE?
The main difference is that some vessels are used for charter, or rental for business purposes, while others are intended exclusively for private and recreational use. Depending on the purpose of the vessel, the periods of use also differ, as charter vessels are in use for most of the year, while private vessels are used less frequently. This reduces the risk of damage because they are usually cared for by only one skipper. Thus, insurance is tailored to the specific needs and risks pertaining to each of these categories of vessels. Marine insurance is specific in several ways that don’t need explaining here, as other laws and other rules apply here compared to the classic insurance and reinsurance market, and their principles and capacities on the market are incomparable.

WHAT COMMON MISTAKES TO VESSEL OWNERS MAKE WHEN CONTRACTING INSURANCE AND HOW CAN THEY AVOID THEM WITH THE RIGHT APPROACH?
The biggest challenge for boat owners is finding a suitable and professional partner (broker) who will enable the creation of a personalized insurance solution tailored to the specific needs of the vessel. Owners often rely on assumptions about coverage, or believe they will not encounter certain types of damage, only to encounter it and become aware that preventive action is key. It is essential to fully understand the risks to which the vessel is exposed, and those risks differ between chartered vessels and those intended exclusively for private use. Choosing a competent broker is of utmost importance.

HOW ARE DIGITALIZATION AND NEW TECHNOLOGIES CHANGING THE APPROACH TO RISK ASSESSMENT, COMMUNICATION AND POLICY MANAGEMENT?
Digitalization and the application of AI solutions have improved certain processes in insurance. Documentation processing is now faster, and the risk review, i.e. the assessment of the vessel and the necessary coverage for each vessel, has become simpler. This gives us more time for direct communication with clients. Although there are initiatives to partially replace direct contact between insurers and clients, that type of approach has proven unfeasible. Property insurance, especially marine insurance, is a personal matter for every owner, which is why technology cannot fully replace personal contact, the person-to-person relationship and the trust built that way.

WHAT INNOVATIVE SOLUTIONS DOES GRECO OFFER CROATIAN CLIENTS IN THE MARINE INSURANCE SEGMENT?
At GrECo Specialty – Marine Insurance, we offer specialized marine insurance tailored to clients. We cover various types of vessels, including superyachts, and we work with domestic and foreign insurers. GrECo Specialty has an active Coverholder status with Lloyd's of London, which extends to nautical insurance, and we also cooperate with P&I clubs.

HOW DO YOU SEE THE FUTURE OF THE NAUTICAL MARKET IN CROATIA AND THE REGION, AND WHAT IS YOUR PERSONAL MOTIVATION FOR WORKING WITH NAUTICAL CLIENTS?
The nautical market here is extremely dynamic and diverse. Although there sometimes seem to be a lot of rivalry and complex situations, it is a relatively small sector where business entities are mutually dependent on each other. Working in the field of marine insurance allows me to continuously communicate with different market stakeholders and to improve my professional skills in a segment that interests me particularly. The market is currently going through a challenging period, driven by significant increases in vessel prices, increased charter rental costs and reduced client interest, all caused by the state of global economy. However, we’ve been noticing gradual revitalization of the sector, with growing interest in new vessels and stable booking results in the charter industry, comparable to the previous year. Previous crises within the nautical market have proven the sector is resilient and there are indications of positive developments in the coming period.