Diversity

Subsequently, DP World transferred its property account from the mutual, while leaving its liability cover there. This sequence brought to increased notice the relatively new business Insure-London, which is headed by Niels Aaskov, a former TT man, and which has an agency agreement on behalf of the Lloyd’s and general insurer Brit.

It is clear the mutual will fight to safeguard premium levels matching its view of claims potential, and that it is taking a hard look at its portfolio, especially now that bodily injury compensation has become so expensive. Analysts sense the TT Club is using greater flexibility to structure its portfolio, acting on a case by case basis.

Talk now is of a greater use of syndication of risk, as distinct from engaging a single carrier to underwrite each account. Julien Hubbard, ports and terminals specialist at broking house Tysers, says: “There is a lot of insurance security out there looking for market share, and there are attempts to underwrite more by way of the subscription market.”

Brokers at Tysers and other intermediaries including Marsh, Aon and Willis, are grappling with these changing patterns to devise the best packages. On the grand scale, Marsh struck a winning formula in negotiating new terms for the Hutchison account.

This competition from subscription initiatives has since 2002 been sharpened by the Lloyd’s market consortium Wavelength, led by XL London Market and QBE Marine & Energy. Travelers, RSA, Navigators and others are making their presence felt. All this has enhanced the role for instance of Charles Taylor Consulting, which is a top third-party claim manager.

As to pricing, Mr Hubbard of Tysers says: “For primary cover, the market is quite firm, but on an excess [beyond standard limits of cover] basis it remains very competitive.”