5) Then the cost of equipment will become higher, but some portion will be recovered by longer market life. To cope with cost hike, as users' effort, provide less equipment which is more reliable. GTR Campbell, designer of FREEDOM vessels, realized this to some extent.
1.1.3 The third aspect, insurance must quickly introduce incentives to favor what is good.
6) Namely, what is theoretically better should be given more encouragement to create overall least cost point to a better standard zone. For instance, less premium to DH tanker, good navigation system, etc. (Rifer to Fig.2)
7) Also premium should be based more on differentiation (tendency) rather than on summation of past record (integration). Theoretical and quantitative analysis on new betterment is necessary.
8) Older (deteriorated) ships must pay more premium.
9) Role of Classification Societies is also important, which will be further discussed later.
