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

People & Company News

OW Bunker Bankruptcy has ‘Limited Impact’ on Monjasa

Though OW Bunker’s collapse has varyingly affected many companies around the globe, Danish bunker fuel provider Monjasa A/S said in a statement that the news holds

Panama Canal Delegates Meet with Japanese Customers

A Panama Canal delegation headed by Administrator Jorge L. Quijano visited Japan to hold discussions with the Japan Shipowners’ Association (JSA) and the major Japanese shipping lines,

Sustainability Report: Carnival Ahead of Emissions Goal

Carnival Corporation & plc released a report today detailing its sustainability efforts, including initiatives which enabled the company to meet its corporate goal

Maritime Security

Australian Navy Seizes $158m of Heroin

An Australian Navy warship patrolling Indian Ocean waters seized heroin worth $158 million near east Africa this week, a navy official said on Thursday, one of

Fulcrum Buys BMT Snyek Technologies

BMT Group announced the sale of BMT Syntek Technologies Inc to Fulcrum Corporation. Fulcrum Corporation, based in Arlington, VA., providies customized services

Danish Crew Receives Bravery Award

This year’s “Award for Exceptional Bravery at Sea” is given to the crew from the DFDS ship BRITANNIA SEAWAYS. The award is presented by United Nations’ International

Casualties

Australia: Maritime SAR in Asia Pacific a Priority

Defense force personnel from Australia are in China for Exercise Cooperation Spirit 2014 which begins today. The exercise aims to enhance coordination and cooperation between Australia,

US Navy Supply Ships Collide in Indian Ocean

Two U.S. Navy supply ships collided in the Gulf of Aden in the Indian Ocean early on Thursday, but no crew members were injured and initial reports suggested the vessels suffered only minor damage,

Danish Crew Receives Bravery Award

This year’s “Award for Exceptional Bravery at Sea” is given to the crew from the DFDS ship BRITANNIA SEAWAYS. The award is presented by United Nations’ International

Maritime Safety

US Navy Supply Ships Collide in Indian Ocean

Two U.S. Navy supply ships collided in the Gulf of Aden in the Indian Ocean early on Thursday, but no crew members were injured and initial reports suggested the vessels suffered only minor damage,

TransAtlantic Scrubber for SECA 2015

TransAtlantic and Stora Enso have signed and started the installation of the first order of a new innovative scrubber that washes out sulphur oxides from ship

Danish Crew Receives Bravery Award

This year’s “Award for Exceptional Bravery at Sea” is given to the crew from the DFDS ship BRITANNIA SEAWAYS. The award is presented by United Nations’ International

Insurance

Russian Firms Face Huge Insurance Costs as Foreign Providers Flee

Russian companies face billions of dollars in extra insurance costs as Western sanctions prompt foreign insurance firms to start pulling out, worried that any business

WQIS President Hobbie to Retire

WQIS announces senior leadership change as president Richard Hobbie sets retirement Richard Hobbie III will retire from his position as President & CEO of the

Courts Upholds BP 'gross negligence' Gulf Spill Ruling

A U.S. judge weighing how much BP Plc should be punished for the 2010 Gulf of Mexico oil spill on Thursday refused to overturn his own finding that the oil company's conduct was "grossly negligent.

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3310 sec (3 req/sec)