In its 2017 report on the P&I Clubs, broker Jardine Lloyd Thompson asked all of the clubs a list of questions. Here are the responses of Swedish Club, UK P&I Club and West of England Club to the final question, asking how the IG is currently most effective and relevant.
Q In your view in what area of its activities is the IG at its most effective and relevant?
Swedish Club said that pooling and other reinsurance arrangements were cost-efficient, noting in particular the pool where claims were shared rather than premiums paid in advance. “These structures offer shipowners the broadest range of cover at very efficient pricing over time”, Swedish Club said.
UK Club said that, through the IG pool, the member clubs were committed to financial and operational standards that gave confidence to governments worldwide, coupled with the opportunity to promote uniformity in liability legislation, the ability to purchase reinsurance collectively, the provision of the highest levels of cover, and the power to be as responsive as shipowners require, regardless of whether a given risk would be profitable to insure or otherwise.
The Club noted a specific example – the clubs’ response to the Maritime Labour Convention and the provision of the Certificates of Financial Responsibility under that convention – as being “an excellent example of the unique service that the IG can deliver to the world’s shipowners at minimal cost”.
West of England
West of England Club said that in the pooling of claims, which enabled IG clubs to provide “unparalleled scope and extent of cover”, continued to be vital to the interests of the overwhelming majority of the world’s shipowners. WoE said that the collective strength of the Group allowed it to respond to the changing needs of shipowners whilst also providing assurance to governments, port authorities and other third parties. West of England also cited the additional certification requirements imposed on shipowners under the amendments to the Maritime Labour Convention 2006. It said that the use of a well-established system of providing similar certificates by clubs which were trusted by flag states and port state control inspectors enabled the burden on shipowners “to be met quickly and at minimum cost”.