TT Club growth up

The growth comes from a mixture of new business, increase in volumes and continued high customer retention. It is as yet unclear as to whether a market shift towards an improvement in the rating environment may have also had an effect.

“Whether this is the start of a change in market conditions will become clearer through 2012, but it is the case that insurers in the Club’s market sector are suffering reduced profitability as a result of rate erosion in recent years”, said Charles Fenton, chief executive officer, TT Club.

The Club insists that much of the success last year was down to the addition of a new cargo product to the Club’s range of products, in response to feedback received from members.

Interestingly – the Club’s financial report reveals a tantalising insight into the main causes of members’ insurance claims.

Based on six year’s statistics, overall claims totalled US$120m and there were over 1,850 claims for more than US$10,000.

Of these, operational error accounted for 63% of the cost of claims with the greatest cause of claims coming from poor systems and processes including: Bad stowage and handling 35% of claims or US$12.8m, customs errors 17% or US$6m, clerical errors 14% or US$5m and contractual errors 13% or US$4.5m.

Theft came as a close runner up to operational error.

Moving forward, the Club is hoping to continue exerting its influence on wider industry decisions and further open up its knowledge base to all members.