Embed Size (px)
Citation preview
The role of P&I
Roberto Lencioni
2.11.2010 Katajanokan Kasino
The 13 International Group Clubs
Owned Entries
First General Excess
Unlimited Reinstatements
Coinsurance 25%
Reinsured by
Hydra
Coinsurance 25%
Reinsured by
Hydra
Protection and
Indemnity
US$ 1,000m
Collective Overspill Protection
One Reinstatement
First General Excess
Unlimited Reinstatements
US$ 20mUS$ 22mUS$ 8m
Third General ExcessUnlimited
Reinstatements Oil Pollution
Second General Excess
Unlimited Reinstatements
International Group of P&I AssociationsGeneral Excess of Loss Reinsurance Contract
StructureOwned and Chartered Entries
(including Overspill Protection, Hydra Participation, Pooling and Individual Club Retentions)
12 months at Noon GMT 20th February, 2010
Lower Pool
First General Excess
Unlimited Reinstatements
Second General Excess
Unlimited Reinstatements
Lower Pool
Individual Club Retention
First General Excess
Unlimited Reinstatements
Pool
Pool – Reinsured by Hydra
US$ 3,050m
US$ 2,050m
US$ 1,050m
US$ 550m
US$ 8m
US$ 30 mUS$ 50 m
US$ 1,000m
US$ 500m
US$ 500m
IG Reinsurance program
International Group P&I Clubs (all clubs)
Owner Mutual GT as at 20 Feb 2006 – 2010
Source: Miller Insurance Services Ltd.
2%61% 18% 60%78%35% -16% 71% 20% 5% 34% -7% 15%5 YR Growth:
-2%11% 4% 8%17%3% 2% 12% 2% -7% 7% 12% -6%1 YR Growth:
Market Share International Group Clubs
For selected Clubs (Mutual Owners’ P&I only)
15.3%
12.4%12.0%11.0%
8.3%7.0%
Number of vessels insured by Marine
As at 20.02
Non-lead
Lead
5,439
6,197 6,3286,415 6,246 6,421
How can we protect?
(1) Risk selection
Make sure all ships accepted to Gard’s insurance
are of top-quality both technically and
operationally
o Ports State Record, Class status, EU Banned ships, Flag status, observations, Claims freq, KPIs
o Based on Portfolio monitoring, Surveys, LPRA technical findings and claims reporting
o All available information on vessel level (GOLF) – input to pricing tool
Risk Assessment (RA) deliveries to UWR
1
2
3
PORTIFOLIO MONITORING
� ContentRisk Assessment
deliveries (6)
VESSEL OBSERVATIONS
o Available client data, vessel information, premium data, claims history,
o Technical advices and assessments to UWR prior to entry or renewal
o Qualified Assessment (trade areas, ports, charter, cargo)
FLEETASSESSMENT
o H&M-, P&I- and MOU-Survey reports (Entry, condition)
o Internal Circular, vessel assessment and rating (0-5)VESSEL SURVEY
o QA-systems, ISM system, manning solution, maintenance (PMS), safety culture
5
MANAGEMENT AUDITS
o Internal Risk Assessment Circulars (IRACs), investigations and enquires.
o Trend analysis & performance analysis, Claims trends, machinery, trade, segments, crew claims.
o Ad hoc reporting, changes in rules, technical updates, input Gard's portfolio level
KNOWLEDGE SHARING6
4
How can we protect?
(2) Risk monitoring
Make sure all ships insured by Gard are maintained
and kept in a good condition
Surveys analysis, 2000 - 2010
0
20
40
60
80
100
120
140
160
180
Cover Not recom. 4 4 4 14 15 13 22 29 31 18
Cover Recom. 105 79 65 115 80 75 131 158 138 80
Cover Restrictions 9 6 7 9 1 4 1 5 8 3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
o Number of inspections last 10 year: 1365
o Number of inspections with recommendation “termination in cover": 162
o Vessels with “Recommended termination in cover” still covered by Gard: 28
How can we protect?
(3) Loss Prevention
1. Gard Updates
2. Client training
3. Client Co-operation
1. Gard Updates Develop and distribute Loss Prevention material to clients and
business partners
o Case studies for on board safety meetings
o Gard handbooks
o Guidance publications
– Gard Guidance to Masters
– Gard Guidance on Bills of Lading
– Gard Guidance on Stowaways
o Alerts & advices
– News
– LP circulars
– Gard News
– LP calendar
o Topic compilations
– Bunkers and bunkering
– Navigation
– Bills of lading
– The carriage of steel
– Containers
– DRI
– Convention booklets
2. Client Training
Actively contribute to client seminars, crew conferences and workshops
o For crew and officers
– Marpol/criminalisation of seafarers
– Introduction to marine insurance
– Pilot handling
– Case study workshops
– On-board risk assessment
– Electronic navigation
o For office staff
– Emergency response
– Media handling & media training
– Contingency exercises
3. Client Co-operation
Provide service and assistance to individual clients upon request
o Benchmarking and mini-seminars
o Individual requests/ inquiries / meetings
– Loss Prevention update
– Specific case/ incident walkthrough
– Advice on a clients new trade areas (geographical advice)
– Safety topics (e.g. lifeboats & lifeboat hooks)
– Support in making procedures (electronic navigation, Pilot handling)
o A supporting role in the development of a company’s Loss
Prevention programme
How can we protect?
(4) Claims handling
Efficient and high-quality handling of incidents and
claims
Gard’s global claims network
.
. .
.
.
.
. Tokyo
Hong Kong
New York
BergenOslo
Arendal
Gothenburg
Helsinki
London
Staff of 400 marine
insurance experts
in 9 countries
& Correspondents’
network world-wide
Piraeus
Updated 12 October 09
Bermuda
.
How can we protect?
(5) Assistance in PR/IR & Media handling
We offer our assistance and consultation
Be H.O.H.
How can we protect?
(6) Indemnity
= To pay compensations to third parties
Make sure your insurances are in a solid club,
also 10 years from now!
Financial strength rating
Standard & Poor’s 2008/2009
Gard A stable Jun 2009
Britannia A (pi) Apr 1999
Standard A stable Nov 2007
North of E A stable Feb 2005
Skuld A- stable Jun 2007
UK Club A- stable Nov 2008
Steamship BBB+ stable Apr 2009
Swedish Club BBB stable Apr 2009
Shipowners BBB (pi) Dec 2008
London BBB (pi) Feb 2002
Japan Club BBB (pi) Feb 2006
West of E BBB (pi) Nov 2008
American Club BB- stable Oct 2007
Competitive position
Free reserves as at 20 Feb each policy year
*For 2009: Change in accounting concept to include budgeted Deferred Calls for next year, the result is an increase of USD 42.4m in the Balance Sheet.
** For 2009: Including subordinated capital securities amounting to USD 97.9 million
Competitive position
Free reserves compared to last 3 policy years claims average
Per cent (20.2.2007 – 20.2.2010)
* Based on ETC / Group basis** Gross of Swiss Re reinsurance arrangements
*** Including the Boudicca arrangement
This was how we can protect the seas.
And what about the air?
THANK YOU!
