Insurance broker Marsh has suggested cutting insurance premiums could help ship-operating companies find the cash to meet upcoming IMO 2020 regulations.

The US company estimates that switching from fuel with a 3.5% sulphur content to that with 0.5% sulphur is likely to add about $2.78bn per year to the bunkers bill of an average vessel-operating company.

The cost of fitting scrubbers to meet the regulations is also likely to be an expensive exercise for owners, said Bradley Saunders of Marsh’s business development and risk analytics department.