Standard Club Announces Hull Facility

Degerli Ilgili,

Asagida Standard Klupten alinan sirkuler yer almaktadir.  Klup, Swiss Re sirketi ve Lloyd’s sendikalarindan teminat elde etmis ve sadece uyelerine yonelik “hull and machinery”, “increased value”, “war risks” ve “loss of hire” sigorta hizmeti sunmaya basladigini duyurmaktadir.  Ekteki bultenlerinde konun ana basliklari yer almakta olup mesajimizin altinda akla gelebilecek cesitli sorulara cevaplar da yer almaktadir.

Sunulan teminatin sadece hasar liderligi yapma sarti ile saglandigi ve baska bir hasar liderinin takip edilemeyecegi bildirilmektedir.  Gemi tipine gore “hull and machinery” ve “increased value” icin kombine $100 milyon limit (ancak hull and machinery icin $100 milyon, increased value icin $30 milyon alt limitlerle) uzerinden; “war risks” icin $100 milyon ve “loss of hire” icin ise $10 milyon limitler uzerinden maksimum 45% hisse sunabilecekleri ve daha dusuk gemi degerinde ise bu oranin artabilecegi duyurulmaktadir.  Undewriting ve hasar yonetimi yine Klubu yoneten Charles Taylor ve P&I hizmetini sunan ekip tarafindan yapilacaktir. Herhangi bir sorunuz oldugunda sizinle ilgili firma brokerimiz gerekli destegi saglayacaktir.

Standard Club Hull Facility, 18 April 2013

Charles Taylor as managers of the Standard Club have arranged a hull and machinery facility exclusively for the benefit of Standard Club members.

Insurance cover is provided by Swiss Re and certain Lloyd’s of London Syndicates. The facility, known as the Standard Club Hull facility, is able to offer a significant lead position on risks requiring a combined limit of $100m for hull and machinery and increased value (subject to maximum sub-limits of $100m and $30m respectively), $100m for war and $10m for loss of hire.

Claims support to the facility is provided by Charles Taylor as managers of the Standard Club drawing upon support from the worldwide marine insurance expertise resident in the Charles Taylor plc group.
This is the second substantial extension of the Standard Club’s range of services to members announced in the last nine months and reflects continuing feedback from members that they are looking for a more extensive range of services to be provided by or in conjunction with their P&I insurer. In July it launched Kidnap and Ransom, Transport Traders’ Liability and Professional Liability insurance products for its members.

This facility combines capacity offered by a panel of leading London market hull underwriters using market standard clauses with the level of service that shipowners have come to expect from the club.  The decision to arrange an exclusive hull facility for its members is part of the club board’s strategy to enhance the range of services to its members.

Standard Club Hull

Frequently Asked Questions for members and brokers

What is Standard Club Hull?

Charles Taylor as managers of the Standard Club have arranged the Standard Club Hull facility which offers Hull and Machinery, Increased Value, War and Loss of Hire covers exclusively to the Standard Club’s members.

The facility, which is led by Swiss Re and various syndicates at Lloyd’s, is able to offer significant lead capacity subject to a maximum line of 45% of combined limits of $100m for Hull and Machinery and Increased Value (subject to sub limits of $100m and $30m respectively), $100m in respect of War and $10m in respect of Loss of Hire. Claims handling services and other technical support services are provided by Charles Taylor & Co

Limited, drawing upon the wider marine market expertise resident within Charles Taylor plc.

Why would a Standard Club member find this facility attractive?

Members of the Standard Club may find this facility attractive because:

• it gives them access to club-standard claims service

• it may enhance the efficiency of claims management, for example when collision guarantees

are needed

• it provides an alternative to members’ current first party insurance arrangements

• the cover is based on market standard wordings and can be tailored to replicate members’

existing cover

Why is the facility being launched now?

The facility will provide shipowners with club-type service allied to London market Hull underwriting expertise deploying familiar and tested, but wide, coverage terms. At a time when the shipping market is suffering from very low freight rates, shipowners need the type of responsive and proactive service that they are used to receiving from their club.

Who is supporting this initiative from an underwriting perspective?

The facility deploys capacity provided by Swiss Re and syndicates at Lloyd’s. Depending upon the type of ship, the facility will offer 45% capacity on a limit of $100m. For smaller ships the facility may be able to provide a greater percentage of the capacity required. The facility will only offer lead and not follow capacity. The lead underwriters on the facility will underwrite each risk on its merits. What is the main advantage of a lead-only facility? It puts the facility into the lead underwriting position but has the flexibility to allow the member’s retail broker and wholesale and/or reinsurance broker to complete the programme using their preferred markets as follow markets.

Will the enhanced level of service mean higher premiums?

All costs associated with the management of claims and the provision of other technical support services will be funded out of underwriting premium and we believe that the risk management expertise within the club’s operations can contribute to good results, which will in turn contribute to competitive pricing.

Why are underwriters supporting this initiative?

Around 9% of the world’s shipping by tonnage is entered in the Standard Club and we estimate that the club members’ total annual premium-spend on Hull and related covers is around $550m. The underwriters are attracted to support this facility because they believe it provides them with access to potential new clients. It also gives them access to the Charles Taylor group’s risk management knowledge and expertise and professional, comprehensive claims management and adjusting services.

Who will be responsible for marketing this facility? Who should I speak to about it?

The club staff with whom you usually deal will be the first point of contact on this facility. They will work closely with the rest of the facility management team and underwriters supporting the facility.

How does a member or their advisors access the facility?

The facility is open to members of the Standard Club and can be accessed by the member directly or through their Hull broker of record. Requests for information and proposal forms should be made to your usual Club contact at Charles Taylor.

How will terms be obtained from supporting underwriters?

Charles Taylor Services Limited will take responsibility for managing the underwriting process and securing underwriting terms and will communicate terms to the member and/or their broker and negotiate any amendments as necessary.

Who is Charles Taylor Services Ltd?

Charles Taylor Services Ltd is a wholly owned subsidiary of Charles Taylor plc and is authorised and regulated by the Financial Conduct Authority (FRN 520262) and is an authorised Lloyd’s coverholder (PIN 108914HLR).

What is the role for the member’s broker?

Quotes will only be offered to the Standard Club members and/or to their Hull brokers of record. The facility will not, therefore, present a threat to members’ and brokers’ existing relationships. The retail broker will receive commission in the event that the cover is placed through the facility. By developing a lead-only facility, there is opportunity for the retail broker directly or through their normal wholesale or reinsurance broker channels to place the balance of the risk with markets of their choice.

Who will issue policy documents and collect premiums?

Charles Taylor Services Limited will manage all aspects of policy documentation, premium collection and credit control.

If the member has a claim under the Hull facility, will it affect their P&I record?

Standard Club Hull is underwritten separately from P&I. If the member has a claim under the Hull facility, it will not, therefore, affect their P&I claims record (or vice versa).

How will claims be handled?

Charles Taylor group will have responsibility for managing and handling the technical aspects of any claim on behalf of lead underwriters and the Lloyd’s lead. Responsibility for the management of the claim will reside with the claims staff of the member’s usual syndicate within the club, working with additional specialist Hull claims expertise within the Charles Taylor group. The claims manager’s role will be to manage the casualty through to resolution and to deal with all the practical casualty issues, from day one to conclusion. This encompasses all administrative matters, correspondence, confirmation of applicable coverage, loss information recording, establishing and maintaining reserves, agreeing disbursements and proceeding with third party recoveries.

What if there are P&I and Hull claims arising out the same casualty and what about conflicts of interest?

A number of casualties give rise to both first and third party claims, and that is one reason why having the club involved in the management of both aspects may allow a better, quicker, smoother and more efficient claims management process. Very occasionally, the circumstances of a claim will mean that the first and third party aspects need to be handled separately, and in that case separate claims managers (and lawyers and other experts as required) will be appointed for each aspect, with complete separation and confidentiality of claims handling.

What are the benefits of this initiative for the Standard Club?

The longer-term goal of the Standard Club is to offer a wider and more extensive range of services to its membership, not only to retain but also grow its membership. The development of this facility, along with other new covers over the last year, helps achieve this objective. The Standard Club has been appointed by Charles Taylor Services Ltd as an introducer of business into the facility and will earn a small fee from the market underwriters for developing business into this facility.