Embed Size (px)
Citation preview
Jakarta
7 December 2012
Standard Club Seminar 2012
Nick Sansom
Director & General Manager
Standard Club update
Contents
– key metrics
– Charles Taylor and the club
– club finances
– claims developments
– renewal issues
3
Key data
– current tonnage insured: 129m gt
– 2012/13 premium income: $300m
– free reserves: 20 February 2013 forecast, unaudited $361m
– S&P A rated (strong) with stable outlook
4
Standard + Poor‘s
The Standard A
|
Britannia Api
Gard A
North of England A
Skuld A
Steamship A-
UK A-
Swedish BBB+
Japan BBB
London BBBpi
Shipowners BBBpi
American BB+
West of England BBpi
0
50
100
150
200
250
300
350
400
50
75
100
125
150
2007 2008 2009 2010 2011 2012 2013forecast
Tonnage Free Reserves Premium
Key metrics
6
$ Million GT Millions
2011 figures are restated to take into account the re-organisation of the Standard Clubs
Ship types by tonnage
7
Tankers Small craft
28% 27% 24% 13% 6% 2%
Dry bulk Container and general cargo
Offshore Passenger and ferry
1 Europe 52%
2 Americas 16%
3 Asia 22%
4 Other 10%
Where we do business
8
1
2
3
4
Our offices around the world
9
NEW YORK
LONDON
PIRAEUS
BERMUDA
SINGAPORE
HONG KONG TOKYO
10
INSURANCE SUPPORT SERVICES BUSINESS.
• professional support services to clients in the Lloyd‘s, London and international insurance markets
• non-life and offshore life run-off servicing services from London, Dublin and the Isle of Man
MANAGEMENT SERVICES BUSINESS
• end to end insurance management services to our insurance company clients
• Standard Club • Signal • SCALA
ADJUSTING SERVICES BUSINESS
• loss adjusting services for: − energy − marine − aviation − non marine
• average adjusting services for shipowners - RHL
Professional services to the insurance
sector
Our products
11
CORE GROUP P&I COVER
TRADERS
DEFENCE
EXTENDED PASSENGER LIABILITIES
THROUGH TRANSPORT OPERATIONS
DEVIATION RISKS EXTENDED PROFESSIONAL
SALVORS
SALVORS’ COVER
CHARTERERS’ BUNKERS
CONTRACTS AND INDEMNITIES
CONTRACTUAL LIABILITIES
PROFESSIONAL LIABILITY
CONSORTIUM COVER
GA ABSORPTION
EXTENDED CARGO RISKS
CHARTERERS’ DAMAGE TO HULL
KIDNAP & RANSOM
EXTENDED OFFSHORE RISKS PRODUCTION/DRILLING OPERATIONS
Loss prevention
– Safety & Loss Advisory Committee
– management risk review
– surveys
– seminars
– newsletters, guides and training DVDs
– The Human Element: a guide to human behaviour in the shipping industry booklet
12
Publications
Standard Asia
14
Director and General Manager
Regional Claims Director
Gillian Musgrave
Claims Directors
SD Shim
Claims Executives
Yasmine Tyebally
Niccole Lian
Moses Lin
Jason Wee
Kin Cheung Kung
Kristian Gray
Claims Assistants
Tjen Soe Ni
Haryani Bte Hashim
Surveyors
Yves Vandenborn
Christophe Vaes
Claims Loss Prevention
Nick Sansom
Underwriter
Charles D‘Alton
Deputy Underwriter
Nick Taylor
Underwriting
Assistants
Risheng Lin
Noraini Mustaffa
Sarojini Ratinam
Tiffany Teo
Underwriting
Support
Mary D‘Cruz
Finance
Financial Controller
Anna Chua
Credit Controller
AiRene Yee
Claims Manager
Lucinda Liu
Claims Executive
Jason Ho
Hong Kong Offshore
Offshore Regional
Claims Director
Sharmini Murugason
IG tonnage and premiums
15
$ per ton collected as premium
3.6 4.0 3.9 3.7
3.4
5.3
6.0
5.2 5.0 5.0
0
1
2
3
4
5
6
2008 2009 2010 2011 2012
Standard IG average
IG claims and premiums
16
$ per ton paid out in claims
3.4
2.4 2.3 1.9 2.1
3.8 3.4 3.5
2.7 3.0
0
1
2
3
4
5
6
2008 2009 2010 2011 2012
Standard IG average
IG tonnage and premium
17
increase 2011 to 2012
6%
2%
Tonnage Premium
1 Sovereign bonds 48.8%
2 Corporate bonds 29.3%
3 Equities 15.1%
4 Alternatives 3.3%
5 Cash 3.0%
6 Gold 1.3%
Asset allocation
18
1
2
3
4 5 6
As at 20 November 2012, unaudited
8.6
-17.4
18
9.9 6.7
3.6
-20
-15
-10
-5
0
5
10
15
20
2008 2009 2010 2011 2012 Feb -Oct 2012est
Investment return
19
%
Estimated approximate return only and subject to change.
10 year compound investment return
20
P&I claims
– current policy year
– not bad compared with recent policy years at half-year stage
– fewer large claims within the club‘s own retention
– earlier years
– claims stable or improved for most back years
– several large claims but fully reserved
– Costa Concordia not a major financial impact for the club
21
1 FFO 10%
2 Collision 9%
3 Wreck 2%
4 Pollution 8%
5 Cargo 32%
6 DTH 3%
7 Personal Injury 33%
8 Fines 4%
9 Other 3%
P&I claims by claim type
22
1
2
3 4
5 6
7
8 9
2006-2012 capped at $1.5m per claim
Defence claims
– 2008/09
– is the current most expensive year
– 2010/11
– may prove to be the most expensive
– 2011/12
– charterparty disputes
– delays caused by loading of nickel ore
– piracy hijack incidents
23
Club development
– new covers:
– kidnap and ransom cover
– traders‘ transport cover
– professional liability cover
– widening the offering
– growing the service
24
Underwriting performance
– forecast combined ratio for policy year to 20/2/13: 110%
– underwriting deficit not likely to reduce without specific action
– claims costs inflation
– low investment income expected
– strong free reserves, but need to maintain financial strength
– But: many members continue to experience difficult trading conditions
25
Call position
Renewal issues
– IG GXL reinsurance increase expected
– Renewal – general increase agreed by the board in October of 7.5%
– Deductibles increase
27
Nick Taylor
Deputy Underwriter
New club covers
New club covers
– kidnap and ransom cover
– traders‘ transport liability cover
– professional liability cover
29
The covers
– launched in July 2012
– developed because members value the club‘s service
– supported by reinsurance from the Lloyd‘s and London market
– www.standard-club.com/ProductsAndServices/NewCovers
30
Kidnap and ransom cover
who is this cover designed for?
– the cover provides protection for the cost of ransoms paid to free ships seized by pirates and associated losses
why is this cover better than what is currently available?
– members of the club benefit from a more joined-up approach to the placing and servicing of this risk and the resolution of piracy incidents
31
Kidnap and ransom cover
32
what is covered?
– kidnap and ransom and associated expenses including loss of hire
– loss of ransom in transit
– liabilities to crew arising from piracy incidents
– legal expenses and the costs of ransom negotiators
Professional liability cover
33
what is this cover?
– professional negligence liability cover for ship agents and ship managers
who is this cover designed for?
– shipowners who are responsible for ship agents‘ activities
– shipowners who manage third party ships
Professional liability cover
what is covered?
agents‘ professional negligence:
– bills of lading
– property damage
– personal injury
– fines
– exceeding authority
– cargo disposal costs
managers‘ professional negligence:
– technical management
– crew management
– commercial management
– property damage
– personal injury
– fines
– exceeding authority
34
Traders‘ Transport Liability Cover
35
who is this cover designed for?
– companies engaged in commodity trading where the majority of the cargo is transported by ship
why has this cover been developed?
– current insurance offerings involve multiple placements
– this is a dedicated product to cover third party liabilities arising out of commodity trading, including transportation
Traders‘ Transport Liability Cover
what is covered?
liabilities arising from:
– pollution liability incurred as charterer or cargo owner
– personal injury
– property damage, including damage to chartered ships
– extended third party cargo liability on board chartered ships
– products liability
– loss of hire arising from lawful detention and piracy
– including war and terrorism risks
during:
– transporting, including use of pipelines
– storing
– mixing, blending
36
Capt. Yves Vandenborn
Senior Surveyor
MLC 2006 and P&I cover
Summary
– introduction to the MLC
– liabilities under MLC 2006
– abandonment
– financial security
– compliance / condition of cover
38
What is the MLC 2006?
– the ―Fourth Pillar‖ of the international maritime regulation which provides comprehensive rights and protection at work for the world's 1.2m seafarers and supports fair competition for quality ship owners.
Titles
1. Minimum requirements for seafarers to work on a ship
2. Conditions of employment
3. Accommodation, recreational facilities, food and catering
4. Health protection, medical care, welfare and social security protection
5. Compliance and enforcement
39
Ratification and entry into force
40
Ratification
Liberia, Marshall Islands, Bahamas, Panama, Norway, Bosnia and Herzegovina, Spain, Croatia, Bulgaria, Canada, Saint Vincent and the Grenadines, Switzerland, Gabon, Benin, Singapore, Denmark, Antigua and Barbuda, Latvia, Luxembourg, Kiribati, Netherlands, Australia, St Kitts and Nevis, Tuvalu, Togo, Poland, Palau, Sweden, Cyprus, Russia, Philippines
Entry into force: 20 August 2013
Enforcement
41
Article V, paragraph 7
– Each member shall implement its responsibilities under this Convention in such a way as to ensure that the ships that fly the flag of any State that has not ratified this Convention do not receive more favourable treatment than the ships that fly the flag of any State that has ratified it.
– A ―Recognized Organisation‖ (RO) of flag state / Port State Control can (if deficiencies represent a serious breach of the MLC) prohibit a ship from leaving a port until deficiencies are remedied.
Liabilities under MLC 2006
– liabilities arising under MLC 2006 are covered according to the rules.
– repatriation?
– cover with club‘s retention?
42
Are they covered?
Financial security
– requirement for owners to provide evidence of financial security
– will P&I club certificate of entry suffice?
43
Condition of cover
— compliance with statutory requirements = mandatory under the club rules
―15.1 (5) the member must comply with all statutory requirements of the ship‘s flag state relating to the construction, adaptation, condition, fitment, equipment, manning and operation of the ship and must at all times maintain the validity of such statutory certificates as are required or issued by or on behalf of the ship‘s flag state…‖
— Port State Control
44
Conclusion
– P&I cover in place for many of the liabilities assumed under MLC 2006.
– repatriation arising out of ―Abandonment‖ not poolable but may be covered within club retention
– P&I clubs investigating if COE can be accepted as financial security
– compliance with MLC 2006 will be a requisite of club cover
– how can the P&I clubs help?
45
Jakarta
7 December 2012
Standard Club Seminar 2012
Capt. Yves Vandenborn
Senior Surveyor
Maritime Labour Convention
Agenda
• ratification and entry into force
• aims
• structure and content
• certification
• inspection
• challenges for ship owners
48
Ratification and entry into force
49
Liberia, Marshall Islands, Bahamas, Panama, Norway, Bosnia and Herzegovina,Spain, Croatia, Bulgaria, Canada, Saint Vincent and the Grenadines,Switzerland, Gabon, Benin, Singapore, Denmark, Antigua and Barbuda, Latvia,Luxembourg, Kiribati, Netherlands, Australia, St Kitts and Nevis, Tuvalu,Togo,Poland, Palau, Sweden, Cyprus, Russia, Philippines
= 59.85% of world gross tonnage
Ratification
Entry into force: 20 August 2013
50
– comprehensive
– 37 ILO conventions and related recommendations
– basic aims
– to ensure comprehensive worldwide protection of the rights of seafarers
– to establish a level playing field for countries and shipowners
Basic aims
51
– Article V, paragraph 7
– each member shall implement its responsibilities under this Convention in such a way as to ensure that the ships that fly the flag of any State that has not ratified this Convention do not receive more favourable treatment than the ships that fly the flag of any State that has ratified it
‗No more favourable treatment‘ clause
52
– articles
– regulations
– code
– part A: mandatory standards
– part B: non-mandatory guidelines
– explanatory note after articles to provide information about relationship between parts of the code
Ratification and entry into force Parts
53
1. minimum requirements for seafarers to work on a ship
2. conditions of employment
3. accommodation, recreational facilities, food and catering
4. health protection, medical care, welfare and social security protection
5. compliance and enforcement
Structure and content Titles
54
– 1.1 minimum age
– 1.2 medical certificate
– 1.3 training and qualifications
– 1.4 recruitment and placement
Structure and content Titles 1. Minimum requirements for seafarers to work on a ship
55
– 2.1 seafarers‘ employment agreements
– 2.2 wages
– 2.3 hours of work and hours of rest
– 2.4 entitlement to leave
– 2.5 repatriation
– 2.6 seafarer compensation for the ship‘s loss or foundering
– 2.7 manning levels
– 2.8 career and skill development and opportunities for seafarer‘s employment
Structure and content Title 2. Conditions of employment
Structure and content
56
– 3.1 accommodation and recreational facilities
– 3.2 food and catering
Title 3. Accommodation, recreational facilities, food and catering
57
– 4.1 medical care on board ship and ashore
– 4.2 shipowners‘ liability
– 4.3 health and safety protection and accident prevention
– 4.4 access to shore-based welfare facilities
– 4.5 social security
Structure and content Title 4. Health protection, medical care, welfare and social security protection
Structure and content
58
– 5.1 Flag State responsibilities
– 5.1.1 general principles
– 5.1.2 authorization of recognized organizations
– 5.1.3 maritime labour certificate and declaration of maritime labour compliance
– 5.1.4 inspection and enforcement
– 5.1.5 on-board complaint procedures
– 5.1.6 marine casualties
– 5.2 Port State responsibilities
– 5.2.1 inspections in port
– 5.2.2 onshore seafarer complaint-handling procedures
– 5.3 labour-supplying responsibilities
Title 5. Compliance and enforcement
59
– Article II, paragraph 1f – seafarer means any person who is employed or engaged or works in any capacity on board a ship to which this Convention applies
– Article II, paragraph 3 – In the event of doubt as to whether any categories of persons are to be regarded as seafarers for the purpose of this Convention, the question shall be determined by the competent authority in each Member‘s Flag State after consultation with the shipowners‘ and seafarers‘ organizations concerned with this question
Seafarer Definition of seafarer
60
– Article II, paragraph 1i – ship means a ship other than one which navigates exclusively in inland waters or waters within, or closely adjacent to, sheltered waters or areas where port regulations apply
– no tonnage requirement
– some flexibility for Flag State depending on tonnage of ship
Ship Definition of ship
61
– 500GT or over, engaged in international voyages
– 500GT or over, flying the flag of a member and operating from a port or between ports, in another country
– or at the request of the shipowner
– ships below 500GT or on domestic trade still need to be inspected, but do not require a certificate
Certification Maritime Labour Certificate
Certification
62
– Declaration of maritime labour compliance
– part I – drawn up by the competent authority
– part II – drawn up by the shipowner
– conform to model prescribed
– Process
– DMLC (Part I & II)
– inspection
– Certified DMLC Part II
– MLC
– (interim, full term 5 years, intermediate survey)
Inspection
63
– by flag state
– list of 14 areas in the working and living conditions of seafarers must be inspected and certified as complying
– by port state
– for foreign flag ships
– for ships flying flag of non-ratifying countries
Title 1.
64
– minimum age
– currently at 16
– night work under age of 18 not allowed
– medical certificate
– nature of medical examination decided by competent authority
– STCW accepted
– maximum validity two years
– training and qualification
– as a minimum ‗personal safety on board ship‘
– STCW
65
– no charge to the seafarer
– manning agents to be conform standards, even in non-ratifying countries
– manning agents to be licensed
– no black lists
– seafarer‘s employment agreement
– insurance to compensate seafarers for monetary loss if employment agreement fails
Title 1. Recruitment and placement
Title 2.
66
– seafarer‘s employment agreement
– legally enforceable agreement
– consistent with code
– wages
– monthly payments
Title 2.
67
– hours of work and rest
– maximum hours of work: 14hrs/24hrs and 72hrs/7-day
– minimum hours of rest: 10hrs/24hrs and 77hrs/7-day
– any 24hrs period: starting at any moment during a day
– hours of rest: no more than two periods, one at least 6 hrs, maximum 14hrs between two periods
– manning levels
– adequate under all operating conditions
– taking into account food and catering regulations in Title 3.2
Title 3.
68
– applicable to ships constructed on/after 20 August 2013
– for non-ratifying countries: one year after they ratify
– all ships, including existing, must provide and
maintain decent accommodation and recreational
facilities
Accommodation and recreational facilities
Title 3.
69
– hospital: exclusive for medical purposes
– master inspection of accommodation and logs
Accommodation and recreational facilities
Title 3.
70
Food and catering
― appropriate quality, nutritional value and quantity
― taken into account different cultural and religious backgrounds
― ship‘s cook to be trained and qualified - minimum 18yrs
― approved training course
– food and personal hygiene
– handling and storage of food on board
Title 3.
71
Food and catering
― master inspection of galley, provision rooms
Title 4.
72
– medical care
– standard medical form by competent authority
– training in medical care, including at least STCW medical first aid
– shipowners‘ liability
– measures in place to provide seafarers with the right to material assistance with respect to financial consequences of sickness, injury or death
– health and safety protection and accident prevention
– risk assessment, near-miss, safety committee meeting, …
Title 4.
73
– must be accessible to all seafarers
Shore-based welfare
Title 5.
74
– ships are required to have on-board procedures for the fair, effective and prompt handling of seafarers‘ complaints alleging breaches of the requirements of the MLC
– any complaint procedure used has to ensure confidentiality and safeguard against possible victimisation of the seafarer
On-board complaint procedures
Challenges for ship owners
75
– sufficient class surveyors to inspect ships and issue certificate?
– inspections against ILO C92 and ILO C133 for existing ships
– approval of domestic or overseas manning agents?
– do ship manager‘s procedures comply with new requirements?
– development of on-board complaint procedures and training
– multi-flagged fleets to coordinate the diversity of national requirements
– training crew awareness of MLC
Gillian Musgrave
Regional Claims Director
Managing marine emergencies
Outline
1. Development of a crisis
2. Offshore specific responses/considerations
3. Summary - crisis management/shipboard accident response
77
1. Development of a crisis
78
Development of a crisis
79
5 hrs Phase I
Incident notification and initial handling
1 week
Phase II
Dealing with immediate crisis
3 months
Phase III
Consideration of legal/technical issues
3 years
Phase IV
Resolution of claims
Phase 1 (5 hours)
80
– initial assessment/identification of risks and issues
– safety of crew/vessel
– notification
– instruction of correspondents/lawyers/technical experts
– formation of Member Incident Management Centre and Club Casualty management team
– member support
The casualty
81
Collision video
82
Collision video
83
Collision video
84
85
Collision video
86
Collision video
Collision video
87
Collision video
88
Collision video
89
Collision video
90
Collision video
91
The casualty
92
93
WHAT HAS HAPPENED?
– initiate ship‘s response plan
– assessment by master/senior officers
– safety of personnel and ship
– cargo damage
– geographical location / environmental condition
Pollution?:
– type of pollution
– physical characteristic
– amount spilled
– quantity onboard
– clean up capabilities
Initial assessment – risks/issues
Notification / reporting
94
WHEN?
– immediately
– concern / suspicion of incident
– pollution: escape from own vessel or oil sighted in adjacent waters
WHO?
– owners/managers
– P&I Club
– port authority
Notification / reporting
95
Why notify Port Authorities?
– they are watching!
– aerial surveillance
– satellite imagery
– infra-red observation
– vessel tracking
96
Notification / reporting
97
Consequences for failure to report to authorities
– penalty / fine
– mitigation through cooperation
– equipped to respond with resources
Notification / reporting
98
Why notify owners and managers? They will:
– notify authorities, agents
– insurers
– P&I
– H&M
– TT
– loss of hire
– charterers, cargo interests
– headquarters & set up incident management centre
– direct and co-ordinate initial response
– control media
P&I and local correspondent
99
Response by P&I and the correspondent
– coordination with port authorities, government organizations
– central point of contact
– arrange mobilization of resources
– formation of:
– member incident centre
– club casualty management team (CMT)
– member support /agree plan of action
– correspondent
– appointment of local surveyors
– attend in person
– link with local authorities
– report to both club and member
Phase II (1 Week)
100
– dealing with immediate crisis
– response/ minimisation of risk
– gathering and preserving evidence
Response / minimise risk
101
– on-going assistance to master / crew
– local office
– local authorities
– salvage efforts
– repairs
– pollution clean up/response
– security demands
– claimants
– port authority
– media / press
Gather and preserve evidence
By crew and surveyors
– investigate source and cause of incident
– record time sequence of events, ship‘s logs, obtain documents
– video of incident / photographs of accident site, retain any relevant equipment or evidence
– monitor surveyors from third parties and restrict access
102
Gather and preserve evidence
Appointment of lawyers
– take statements from: – master
– crew
– other witnesses
– collect evidence: – documents
– photos
– video
– subject to legal privilege
103
Public inquiry / criminal proceedings
104
Phase III (3 months)
– liability analysis
– extent of damage
– development of case strategy
105
Phase IV (3 years)
– legal proceedings
– settlement negotiations
– resolution of claims
106
2. Offshore specific response/considerations
107
Scenario
108
– collision between Supply Boat and FPSO in the field
– different considerations at play for each vessel, hence the response plan/course of action for the vessels will differ. – injuries/death?
– property damage?
– pollution?
Casualty management team
109
Club casualty management team:
– Director of Claims
– Syndicate Director
– Syndicate Claims Director
– Director of Loss Prevention
Club response for supply boat
110
Duties of CMT:
– liaise with member‘s CMT
– instruct correspondent
– fact finding
– request contracts
– Contractual responsibilities of project parties (knock-for-knock)
– appoint lawyers – choice of lawyer?
– knock-for-knock contract expertise
– local office
– ITOPF
– public relations
– cover issues
–Summary crisis management / shipboard accident response
111
What you SHOULD do in the
event of a crisis / accident
112
– maintain presence of mind
– preserve contemporaneous evidence
– most accurate and timely reporting successful defence of claims
What you should NOT do in the
event of a crisis / accident
113
Do Not:
– allow a surveyor or lawyer on-board the ship, until he has identified himself
– allow a surveyor or lawyer acting for opposing parties on-board, unless accompanied by a surveyor or lawyer acting for you
– give written material or physical evidence to an opposing lawyer or surveyor
What you should NOT do in the
event of a crisis / accident
114
Do Not:
– give an opinion on liability
– admit liability, either verbally or in writing
– sign a document which you know contains incorrect information
– think the problem will go way if you do nothing
Jakarta
7 December 2012
Standard Club Seminar 2012
