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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Williamson Named GM of Donjon-Smit

Donjon-Smit, LLC, an OPA-90 Alliance, announced that after a recent Board of Directors meeting Tim Williamson has been promoted to General Manager of Donjon-Smit,

Fundraiser Held for USS Gerald R. Ford Crew

Blackmer, a company in positive displacement and centrifugal pump and reciprocating compressor technologies, has a relationship with the U.S. Military that dates

Meercat Workboats Scores a Hat-trick

The U.K.’s Meercat Workboats says it scored a hat-trick; the Hampshire-based boat builder announced it is moving premises, that Seawork was a huge success and that

Maritime Security

Russia, US Blame Each Other for Maritime Incident

Russia and the United States gave contradictory accounts on Tuesday of an incident involving the two countries' navies in the Mediterranean Sea on June 17, each

Red River Closed after Barge Grounding

The Red River was closed Sunday from mile marker 40 to mile marker 42, after a barge reportedly ran aground and was protruding into the channel near mile marker 41, according to the U.

Chemical Tanker Runs Aground off Alaska

A 599-foot Norway flagged chemical tanker Champion Ebony ran aground near Nunivak Island, Alaska on June 24.   U.S. Coast Guard Sector Anchorage watchstanders

Casualties

Waterway Reopened after Barge Grounding

The U.S. Coast Guard has opened the Red River from mile marker 40 to mile marker 42 for vessel traffic, Monday.   The Red River had been closed due to a barge that had run aground at mile marker 41,

Red River Closed after Barge Grounding

The Red River was closed Sunday from mile marker 40 to mile marker 42, after a barge reportedly ran aground and was protruding into the channel near mile marker 41, according to the U.

Tanker Crewman Medevaced off Virginia

The U.S. Coast Guard medevaced an ailing crew member Saturday from a tanker off Virginia Beach.   Coast Guard watchstanders at the 5th District Command Center

Maritime Safety

ClassNK to Perform AWO Responsible Carrier Audits

The American Waterways Operators (AWO) and ClassNK have signed an agreement under which ClassNK will be authorized to conduct audits of AWO's Responsible Carrier Program,

Waterway Reopened after Barge Grounding

The U.S. Coast Guard has opened the Red River from mile marker 40 to mile marker 42 for vessel traffic, Monday.   The Red River had been closed due to a barge that had run aground at mile marker 41,

Lloyd's Register Extends Drilling Rig Integrity Support

Exploration begins by BHP Billiton using the Deepwater Invictus rig and supported by Lloyd’s Register’s rig integrity team. Lloyd’s Register (LR) announced it

 
 
Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar Winch
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: 0.1012 sec (10 req/sec)