Directors of the ‘A’ rated 130 million GT North P&I club have decided to launch a fixed-premium product for hull and machinery cover on 1 July 2011. The move is in line with the club’s strategy of expanding its product range beyond its core protection and indemnity (P&I) service.
Initial targets for the new product are shipowner members of Marine Shipping Mutual Insurance (MSMI), a 39-year-old hull and machinery club that is managed by North’s management company, North Insurance Management Limited (NIML). The MSMI board recently decided to cease underwriting on 30 June 2011 after accepting that, though solvent, the hull club’s small-scale business model was unlikely to be viable in the foreseeable economic climate.
According to North chairman Albert Engelsman of Dutch shipping group Wagenborg, ‘Exact details of North’s new hull and machinery cover are still being finalised but it will be a fixed-premium product operating on a conventional subscription basis. While this is significantly different to MSMI’s model, it will offer the same level of club-style service and we anticipate it will be attractive to MSMI members as well as other shipowners in North and elsewhere.’
NIML joint managing director Paul Jennings says, ‘It has long been one of North’s publicly stated strategic aims to expand its product range to members, adding to the successful P&I, freight demurrage and defence, war and non-poolable covers offered today. Hull and machinery is something the club has wanted to offer for some time.’
Fellow joint managing director Alan Wilson says, ‘This is an exciting development for North and its members, supported by the club’s strong financial position, reputation for high quality service and existing management experience in hull and machinery insurance. The directors are confident the new hull and machinery product will further enhance the club’s financial position and strengthen service to members.’
North provides P&I insurance to 100 million GT of owned tonnage and 30 million GT of chartered tonnage, with 4250 ships entered by 375 members. The club is based in Newcastle upon Tyne, UK with regional offices in Hong Kong, Piraeus and Singapore. MSMI currently has 8 million GT of entered tonnage, with 400 ships and 50 members, and is also based in Newcastle upon Tyne.
Source: Press Release
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