CAP LETTER 52.pub

CAP-MARINE
A s s u r a n c e s & R é a s s u r an c e s S . A . S .
We b : w w w.c a p - m a r in e .c o m
CAP-LETTER
HEADLINES
♦ Agreement on
regulation
double-hull oil
1
regarding
tankers
♦ POSIDONIA
4 - 8 June in Athens
♦ International
Group P&I
annual report
♦ P&I Clubs face resistance on
rates increase
2
♦ Ghosts of the Titanic
3
♦ Le Costa Concordia ne fait
pas flamber les prix de
l’assurance maritime
♦ Fragile Hull market needs
repricing
♦ Assurance:
la France
conforte sa 2ème place en
Europe
♦ IUMI 2012 shipping statistics
♦ CNA’s Hardy purchase
♦ Package police Corps
Marine Insurance &
Reinsurance Brokers
SIEGE SOCIAL (ROUEN)
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BUREAU DE GENEVE
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Tel : +41(0) 22 548 36 46
1201 GENEVE
SUISSE
Rédacteurs
Jean-Jacques GIRARD (Neuilly)
Gaspard MOTTE (Bois-Guillaume)
4
Agreement on regulation regarding
double-hull oil tankers
Numéro 52
Mai 2012
An international set of rules, preventing pollution from tankers, prescribes
that tankers carrying oil must be constructed with double-hull or a similar
solution to minimise the risk of oil pollution.
As a result of the rules single-hull oil
tankers have been phased out.
With the regulation from 2002 the
Member States in the EU committed
to further acceleration of the
phase-out scheme for single-hull
tankers than previously agreed
upon. At the same time a new set of
rules to limit the transport of oil in
single-hull tankers to and from ports
in the Member States was introduced.
The new regulation, which is the first result in the maritime area for the Danish
Presidency, ensures that all changes to the original regulation from 2002 are
gathered. This creates transparency in the community laws and increases the
ease at which the rules can be understood.
During 2011 the Council and the European Parliament has negotiated the proposal under the leadership of changing presidencies. From the start of the sixmonth presidency the Danish Presidency has worked hard to finish the negotiations, which has now paid off.
The political agreement must be formally adopted by the European Parliament
and the Council.
The regulation in the EU has covered only vessels calling into port in the EU,
while the international rules apply to all vessels in transit along the coasts as
well. Agreement between the regulation in the EU and the international set of
rules in the area ensures competition on equal terms.
The Commission put forward the newest proposal on accelerated phase-in of
double-hull tankers or equivalent design in 2011. The proposal empowers the
Commission to adopt delegated acts. In other words this means that the Commission has the authority to adopt decisions of technical matters outside the ordinary legislative procedure between the Council and the European Parliament.
Friday, 13 April 2012 | 00:00
POSIDONIA 4 - 8 June in Athens
What they said :
According to fellow panelist and Navios Group chairman Angeliki Frangou, there has been
a generational shift that requires financial innovation where shipowners had previously
focused on technical operations. The retrenchment of many European banks from shipping
lending due to tighter regulations and the subsequent de-leveraging process is now irreversible, she argued, meaning that shipowners must tap alternative sources of financing in
order to secure growth.
SHIPOWNERS are being urged to hold crewing agents more accountable as crew standards face increased scrutiny
More than 62% of maritime incidents have human error as a major root cause, whether
crew, officers or pilots, according to Skuld vice-president claims Flavia Mellilo.
CAP-LETTER
International Group of P&I Clubs issues annual report
Regulatory changes
There are three issues that are occupying a considerable amount of time, both within the Secretariat and Club
managements. These include:
• the state ratifications of the Athens Convention 2002 Protocol;
• the 31 December 2012 implementation date for the EU Passenger Liability; and,
• the likely entry into force of the ILO Maritime Labour Convention.
The process of bringing the EU Insurance Directive into force within member states has required extensive engagement
with them, and the International Group has also been involved in providing industry input into the application, and
review, of the EU Environmental Liability Directive.
The most recent European Union (EU) review of the organisation and operation of the International Group and its
member Clubs was formally launched by the Directorate General of Competition in August 2010.
The Commission is carrying out a detailed review of a number of aspects of the International Group and its members
with a focus on the International Group’s claim sharing and reinsurance arrangements. Since the start of the
investigation, a substantial amount of information and data has been provided to the investigating case team by
everyone involved.
So far, no specific concerns have been articulated by the Commission. The former case team manager has publicly
stated that the intention of the review is not to damage or undermine the International Group system, but rather to see
if it can be made to work more effectively for shipowners.
Cargo concerns
Periodically there are specific problems relating to the carriage of particular types of cargo and, in 2011, it was the
turn of solid bulk cargoes with liquefaction propensities. This came under the spotlight following a series of total losses,
which also sadly involved a heavy death toll.
Over a number of years, problems arising from the carriage of certain types of cargo have required both the
International Group and its Clubs to coordinate efforts with other industry associations – in particular, the IMO. Last
year, three vessels sank carrying cargoes of nickel ore from Indonesia to China, with the loss of 45 seafarers.
While the cause of these casualties has not yet been definitively determined, nickel ore (like iron ore fines) is a cargo
that is likely to liquefy if its moisture content exceeds the Transportable Moisture Limit when loaded. Liquefaction of
ore cargoes can also be caused by the normal incidents of a sea voyage, for example, the motion of the ship in the
seaway or vibrations caused by the running of the main engine or other onboard machinery.
Liquefaction of such cargo can result in a loss of stability, which in turn can lead to a vessel capsizing. It is therefore
very possible that all three vessels were lost as a result of cargo liquefaction. There have been a number of other
recent reports of cargoes of nickel ore – loaded in both Indonesia and the Philippines – liquefying and causing loss of
stability to the carrying vessel, although fortunately none resulted in the loss of the vessel. In one such case the
carrying vessel grounded, causing extensive hull damage.
The International Group has been cooperating with other industry organisations, including Intercargo, ICS and Bimco,
to inform shipowners of the dangers associated with the carriage of solid bulk cargoes that have a propensity to
liquefy, and the importance of ensuring that shippers comply with the requirements of the IMSBC Code.
Source: IG P&I (International Group of P&I Clubs)
P&I Clubs Face Resistance on Rate Increases
Insurers operating in the marine protection and indemnity (P&I) market were embroiled in tough negotiations over the
February 2012 renewal period. Announced general increases were modest, ranging from flat to 5%, with the majority of clubs at the higher end of this range, according to a recent briefing issued by A.M. Best Co. Even so, there was
strong resistance to any upward movement in premium rates, with the clubs’ ship operating owners deeply affected
by difficult economic conditions.
The P&I market remains dominated by the members of the International Group of P&I clubs, which collectively insure
approximately 90% of the world’s oceangoing tonnage. As mutual insurers operating for the benefit of their members, the 13 principal clubs have to balance the need to maintain their financial stability with the fiscal constraints of
their membership.
Source: A.M. Best Co. Friday, 30 March 2012 | 16:30
CAP-LETTER
INSURANCE MARKET
Ghosts of the Titanic haunt marine insurers
100 years on from the sinking of the Titanic, Reactions looks at how
Lloyd’s of London and the marine insurance market were affected by
the disaster and what lessons can be taken from the event.
The sinking of the Titanic on the 15th of April, 100 years ago, is an
event that sticks in the consciousness of the insurance industry. The coverage for the ship, brokered by Willis Faber, had been arranged within
three days as insurers rushed to cover a prestigious vessel. The broker
was able to arrange hull and machinery coverage for £1m, £95m in
today’s money, for both the Titanic and its sister ship, the Olympic, with
premiums amounting to only £7,500 per vessel.
By way of comparison, the total insured marine loss for 1912 came to £6.75m.
The Olympic and Titanic risks were enormous. Not all were convinced, however, and one Lloyd’s member, British Dominion’s Marine Insurance, famously refused to sign the slip. Its founder, Edward Mountain suggested that the Titanic
“sat too low in the water” and that the rates were too cheap.
Source: 13 April 2012 /reactions
Le « Costa Concordia » ne fait pas flamber
les prix de l’assurance maritime
Fragile international hull market
needs repricing
Le naufrage du « Costa Concordia », annoncé comme le
plus coûteux de l’histoire de l’assurance, ne devrait pas
pour autant bousculer le marché.
Dans une étude récente, le courtier Willis décrit un marché en pleine évolution. D’un côté, on trouve des opérateurs sur le marché de Londres, qui supporteront la majorité des 500 millions de dollars d’indemnisation pour le
naufrage du paquebot, refusant catégoriquement des
baisses de prix ou même des renouvellement à l’identique. A l’inverse, les assureurs scandinaves ou asiatiques,
qui n’ont pas été concernés par ce sinistre, sont, eux, plus
ouverts aux négociations.
Plus largement, cette catastrophe ne devrait pas se traduire par une réduction des capacités offertes par les
Assureurs. La compétition intense qui anime le marché
asiatique pèse également sur les prix.
Le « Costa Concordia » pourrait en revanche avoir un
impact plus marqué sur les prix de l’assurance en responsabilité civile, qui étaient relativement stables jusqu’au
mois de janvier. Plusieurs assureurs espèrent obtenir des
hausses de 5% minimum, mais il est difficile de voir si
cela pourra se faire sur tout le marché, vu l’excédent de
capacités encore disponibles.
En assurance de marchandises transportées , les conditions tarifaires sont toujours à l’avantage des assurés sur
un marché orienté à la baisse depuis plusieurs années.
Les souscripteurs ressentent aussi l’impact de la piraterie,
avec une augmentation de 77% des rançons réclamées
en 2011.
The Costa Concordia casualty leaves the international
hull insurance market with no technical justification for a
soft market, according to Joint Hull Committee chairman Mark Edmondson.
Source: Les Echos, 25 avril 2012
Even before the incident the market, which includes
both Lloyd’s and London-based International Underwriting Association members, was likely to experience
one of the worst incurred-loss ratios for years, Mr
Edmondson argues.
“Of course there are carriers that outperform the market and underwriters that have no, or relatively minor
physical damage exposure to Costa Concordia, but
overall the underlying performance within hull insurance is extremely poor and has clearly deteriorated
during the past two years” he said.
This increasingly poor result was a clear feature of the
business before factoring in what is likely to be the
largest loss to impact the marine hull market by some
considerable margin.
Therefore, to describe the tragic loss of Costa Concordia as a catalyst that triggers a change in market conditions is, in my view, certainly accurate. For many, the
loss has effectively poured petrol on a fire that was
already burning.
With the added burden of an event as significant as
this, any technical explanation for a soft market has
evaporated.
Source: Tuesday 6 March 2012
CAP-LETTER
Assurance : la France conforte sa 2ème
place en Europe
D'après les chiffres du Comité européen des Assurances
(CEA), l'Europe occupe la première place du marché mondial de l'assurance, devant l'Amérique du Nord et l'Asie.
En 2010, les cotisations d'assurances atteignent 1 107
milliards d'euros en Europe, dont 61 % pour l'assurance
vie, 29 % pour les assurances dommages et 10 % pour
l'assurance santé. Sur la dernière décennie, elles progressent à un rythme de 3 % par an.
Le Royaume-Uni, la France et l'Allemagne sont les acteurs
les plus importants du marché de l'assurance européen.
Avec 37 % des cotisations mondiales d'assurances, le
secteur de l'assurance européen est le premier au monde,
devant l'Amérique du Nord (30 %) et l'Asie (27 %).
Les assureurs vie européens ont versé 560 milliards d'euros à leurs assurés en 2010, sous forme de capital ou de
rentes, au titre de leurs différents contrats d'assurance
(en cas de vie, décès, etc..).
De leur côté, les assureurs non vie européens ont indemnisé leurs assurés à hauteur de 290 milliards d'euros en
2010, au titre de leurs contrats d'assurance auto ou santé, principalement.
Par l'intermédiaire de l'épargne de leurs assurés notamment, les assureurs européens contribuent à financer l'économie et y ont ainsi investi plus de 7 300 milliards d'euros en
2010, soit l'équivalent de 54 % du PIB de l'Union européenne.
Enfin, les quelques 5 000 sociétés d'assurances européennes emploient directement près de 950 000 personnes.
Source: www.ffsa.fr - 19/10/2011
CNA’s Hardy purchase “a done deal”
A London insurance market analyst says that the surprisingly attractive deal for CNA to buy Hardy Underwriting
Bermuda is likely to complete as planned following
Beazley’s announcement that it would not enter a rival bid.
Bermuda-domiciled Lloyd’s insurer Hardy Underwriting
Bermuda's agreed acquisition by US insurer CNA for
$227m is likely to complete as planned, according to
Espirito Santo analyst Joy Ferneyhough.
“It’s a much more attractive offer than anyone had been
thinking,” Ferneyhough told Reactions.
Source: 21 March 2012 reactions — Read more: cna. hardy underwriting barbara merry lloyd's
IUMI 2012 Shipping Statistics – Analysis
Major Serious Losses
Worryingly, the number of major incidents remains consistent with the trend experienced over the previous 4
years. As with total losses the back year figures continue to deteriorate. There have been 591 serious
losses reported to date in 2011 which is similar to the
623 reported a year ago for 2010. This figure has
deteriorated to 691 to date.
The major cause of serious losses remains ‘machinery
damage and engine room problems’, accounting for
35.43% of incidents over the last 5 years. 50% of all
major serious incidents reported have occurred to vessels in excess of 20 years of age.
Package police Corps / The Marine Hull and Machinery Insurance Package
Le marché français de l’assurance transports a élaboré un package de garanties pour la couverture des « corps » de
navires. Ce package comporte une police principale garantissant, entre autres, les dommages au navire, des Conditions risques de guerre (y compris celle de la piraterie) et pertes financières, ainsi que plusieurs clauses additionnelles
qui permettent de modifier ou de compléter les garanties proposées et de répondre ainsi à des demandes spécifiques.
Retrouvez tous les modèles de clauses sur le site de la FFSA, Section Assurance Transports.
www.ffsa.fr