The giant industry group is reported to have allotted its property cover through the Insure-London facility, founded in 2006 to syndicate placements with leaders in both the Lloyd’s market and London company market; and its liability cover to a separate syndication of Lloyd’s and company providers.
Sources suggest that the move was the result of a tender process by the ports group among potential insurers. At the same time, there was apparently concern in the club that a deteriorating claims record was beginning to present a big test for the mutuality principle.
Given its interests in a total of 292 berths in 47 ports, spanning 24 countries, and workforce of 30,000, Hutchison poses a substantial risk management task.
The departure will reduce the 62% portion of the club portfolio hitherto devoted to ports and terminals, but other top names, including AP Moller and Dubai Ports World, remain.
Hutchison rejoined the club in 2003, after taking one year of cover with rival facility Lloyd’s-based Wavelength. Further swings cannot be ruled out in due course, but at this early stage of the policy year the ports group looks settled with the fresh providers, including Insure-London, whose main partner, Niels Aaskov (a one-time property specialist at the TT Club) is focusing the managing general agency on property cover only.
Hutchison told Port Strategy that as a matter of company policy “we do not comment on details of our commercial contracts, including insurance matters”.