Machinery Risks News

The Strike Club reported a strong start to its new policy year that commenced on February 1, with continuing demand for its mutual entries and fixed-premium products covering war risks, loss of earnings and profit protection for time-charterers. When the club’s directors met recently in Hong Kong they noted an encouraging renewal rate of 99% among mutual members (by premium) for the 2014/15 year. Further, despite the challenging trading environment, the club continues to maintain its reserves, on a combined basis, at $35m. And the club retains its S&P rating of BBB+ with stable outlook. In Hong Kong, the directors reviewed the future structure of the club in view of the increasing EU insurance regulatory climate under Solvency ll (now delayed until 2016).

The early months of 2013 have been marked by damaging labor strike action in several countries which has punished shipowners and charterers even though they are innocent parties, says The Strike Club, the market leader for delay insurance for the marine trades. Some of the worst trouble spots in recent weeks have been in South America, particularly Chile where a three-week strike crippled the country’s key ports, blocking exports of copper (Chile is the world’s largest producer of this metal), fruit and wood products. Chile’s business leaders estimated the country lost more than $200 million a day due to the conflict. There has been a miners’ strike in Colombia…

Managers of The Strike Club were able to give an upbeat report to the club’s directors when they met in Istanbul. Ongoing increased demand for the club’s various insurance covers has resulted in strong growth and a very positive renewal in February for the 2012/13 year. Further, free reserves rose by $2.5m. during the latest financial year, and the club has maintained its S&P rating at BBB+ with a stable outlook. The mutual renewal was stamped by a 92% retention rate despite the…

General Increases of 10% & 5% are Maintained for 2012/13 Year Mutual Entries. The Strike Club, the market leader in the niche area of delay insurance for the marine trades, reports continuing strong demand from both owners and charterers for its fixed-premium war risks insurance that offers cover to a limit of $200m. This is partly because the club is able to offer a ‘one stop shop’ war risks insurance to cover traditional hull & machinery risks, with tailored extensions as required; for example, loss of hire due to piracy even in the absence of a hull & machinery incident, or charterers’ loss of bunkers resulting from a hijacking etc.

The UK War Risks Club will return 10 percent of the net Advance Contribution paid by members for the 2008 policy year to all who renew for 2009. The directors’ decision reflects the projected operating result for the 2008 policy year which ends on February 20th. The return will be credited against the contribution required for the next policy year. Andrew Ward, Director of Underwriting at UK War Risks, said: "I am pleased to announce that the Club is able to make a return of call despite the challenging investment markets in 2008. The worldwide trading rate for passenger and cruise ships will be 0.0363 percent. Other ships will be subject to a worldwide rate of 0.0102 per cent and a restricted trading rate of 0.0051 per cent.