By Rebecca Delaney

May 20 - (The Insurer) - Marsh has been appointed as broker for the Royal Australian Navy's maritime insurance program for construction risks, the company said on Tuesday.

The maritime insurance program encompasses all aspects of Australia's naval shipbuilding, sustainment and modernisation activities.

Marsh will provide broking and risk advisory services for the Royal Australian Navy’s construction risks insurance program, which will cover the building and expansion of its surface fleet.

Marsh said the scope of the program may include Australia’s six Hunter-class frigates, 11 general-purpose frigates, three Hobart-class destroyers and six large optionally crewed surface vessels, as well as its naval infrastructure precinct in Osborne, South Australia.

The appointment marks part of the Australian government’s plan to increase the size of its surface fleet by the 2040s, and develop new naval capabilities under the national defence strategy.

"The engagement presents a unique and significant proposition to global insurance markets. Through a combination of first-class risk management and highly streamlined administration, the Navy’s Maritime Insurance Program is ideally positioned to drive optimal outcomes for stakeholders," commented David Bidmead, executive chairman of Marsh McLennan Pacific.