ABSTRACT
The wish of humans to explore new areas, environmental changes and growing worldwide demand have led to the Arctic region’s increasing popularity in recent years. The cruise industry is continuously evolving in this area, creating an important need for more research into the risk of operating in the Arctic Ocean. However, most insurance firms do not yet have standard procedures for evaluating risk and policies to build insurance premiums for the Arctic cruise ship industry. The paper refers to our participation in a survival exercise in Arctic waters during May 2017, where the objectives were to assess the capability of rescue means in cold regions. Using our experience of the exercise as a basis, in this paper we are presenting the limitations related to cruise voyages in the Arctic. We suggest an insurance process that should be followed and finally discuss on some key factors that drive an insurance premium’s cost for the cruise ship industry in the Arctic.
