UK P&I's New Approach to Risk Management

press release
Monday, January 16, 2012

The UK P&I Club takes a BowTie approach to risk management.

 

Marine mutuals like the UK P&I Club are committed to reducing the number and size of insurance claims they receive. After all, in the P&I world, members own their respective clubs and through pool arrangements within individual clubs, they in effect pay their own claims. The smaller the level of claims, the healthier the club becomes and this has a knock-on effect on the cost of insuring through the club.

 

After much study and only after in-depth trials with certain shipowners, the UK P&I Club is now launching an innovative risk management scheme utilising a ‘BowTie’ approach to identifying areas of risk and minimising the occurrence of incidents. The Club’s Loss Prevention Director, Karl Lumbers, explains:

 

“Working with those members who wish to identify the various threats to the smooth (claim-free) running of their vessels, we conduct reviews on those areas which may cause claims. Thomas Miller P&I Ltd, the manager of the UK Club, has access to an incomparable amount of claims data resulting from extensive analysis of previous incidents over a period of 23 years and it is this that has enabled the Club to identify ‘threats’, ‘consequences’ and ‘controls’, the foundations of developing BowTie reports on individual vessels.”

 

As an example, on one vessel, a Panamax bulk carrier, five ‘hazards’ were selected as being the most frequent liability claim areas seen by the Club. These were:

 

• Crew hazardous activities – personal injury;
• Carriage of cargo by sea – cargo damage;
• Ship in transit – collision/grounding damage;
• Ship/crew actions – third party property damage;
• Carriage of pollutants by sea – pollution damage.

 

Following an extensive on-board survey,’threats’ relating to all five hazards were assessed, ‘controls’ that needed attention were identified and recommendations for changes in working practices were proposed to the master and owner/manager.


Applying the BowTie concept to management of risk on board ships

 

According to Karl Lumbers, the UK Club has been analysing claims over a period of 23 years, and has identified seven primary risk hazards; 76 common threats, which if not contained could cause an incident; and 450 controls which need to be in place and effective if the threats are to be contained.  He states:

“Although sixty per cent of UK Club claims are caused by ‘human error’, human error is often only ‘the straw that breaks the camel’s back’ – the last event in a chain of causal events.

“These causal events can normally be traced back to failures in one or more areas of ship operation; we sometimes refer to them as ‘accidents waiting to happen’.

“How can we reduce the frequency of these ‘accidents waiting to happen’?  What ‘controls’ should we be looking at to ensure the ’threat’ is contained and an ‘incident’ does not occur?”

 
Tangible benefits to shipowners

 

The Club’s approach offers strategic guidance to owners and operators on tackling the root cause of expensive claims.  Using quantified real-life case examples owners/operators are able to invest proportionately in risk management and loss prevention activity. 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DP World Inaugurates Jebel Ali Inspection Facility

DP World informs it has inaugurated the largest and latest container inspection facility at its flagship Jebel Ali Port in Dubai. The new facility is one of the

China Shipbuilder Rongsheng 2013 Revenue Freefall

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.

InterManager Welcomes New MLC Amendment

InterManager, the international trade association for the ship management industry, says it has welcomed the adoption of new measures to protect seafarers against abandonment.

Maritime Security

DP World Inaugurates Jebel Ali Inspection Facility

DP World informs it has inaugurated the largest and latest container inspection facility at its flagship Jebel Ali Port in Dubai. The new facility is one of the

Libyan Oil Port Re-Opening Delayed

Technical problems have delayed the reopening of Libya's eastern Zueitina oil export terminal after the government reached a deal with rebels to end an eight-month blockade of the port,

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Casualties

Eugen Maersk 2013 Fire: Summary Findings

The Danish Maritime Accident Investigation Board (DMAIB) has issued a summary report in the English language concerning a fire outbreak aboard the container ship in the Gulf of Aden.

Captain of Korean Ferry Praised Safety in Promotional Video

The captain of a ferry that sank off South Korea's southwestern tip with hundreds feared dead said in a promotional video four years ago that the journey was

Deadly Attack In Ukraine Shakes Fragile Geneva Accord

At least three people were killed in a gunfight in the early hours of Sunday near a Ukrainian city controlled by pro-Russian separatists, shaking an already

Maritime Safety

Eugen Maersk 2013 Fire: Summary Findings

The Danish Maritime Accident Investigation Board (DMAIB) has issued a summary report in the English language concerning a fire outbreak aboard the container ship in the Gulf of Aden.

Container Ship Delivers First Boxes to Great Lakes Port

The US Coast Guard say that the 'Fortunagracht', a 450-foot Dutch-flagged container ship, has delivered the first-ever load of containerized cargo to the Great Lakes.

Captain of Korean Ferry Praised Safety in Promotional Video

The captain of a ferry that sank off South Korea's southwestern tip with hundreds feared dead said in a promotional video four years ago that the journey was

Insurance

InterManager Welcomes New Protection for Seafarers

InterManager said it welcomes the adoption of new measures to protect seafarers against abandonment. Amendments to the Maritime Labour Convention 2006, agreed

S.Korean Ferry Master Faces Investigation

The captain of the South Korean ferry that capsized off the southwest coast was facing a criminal investigation on Thursday, an official said, amid unconfirmed

South Korean Ferry Incident Update

Almost 100 ships, 18 helicopters involved in rescue; as many as 340 people from one school thought to be on board. Accident may be South Korea's biggest in 20 years.

P&I Clubs

S.Korean Ferry Master Faces Investigation

The captain of the South Korean ferry that capsized off the southwest coast was facing a criminal investigation on Thursday, an official said, amid unconfirmed

South Korean Ferry Incident Update

Almost 100 ships, 18 helicopters involved in rescue; as many as 340 people from one school thought to be on board. Accident may be South Korea's biggest in 20 years.

Ultra Deepwater Rig Towed 11,500 Miles

Fairmount Marine towed Sevan Louisiana to Curaçao Tug Fairmount Sherpa towed rig Sevan Louisiana safely from Singapore to Curaçao. During the 11,500 miles voyage via Cape of Good Hope,

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1523 sec (7 req/sec)