The Insurer

To underwrite a range of logistics risks, it has recruited a team headed by Peter Rogers, already one of the best known personalities in the field, and including in-house claims specialists who will serve the whole of its extensive marine division.

Kiln will be one of the few outfits at Lloyd’s to get involved in ports cover independently, rather than as part of a consortium, a formula which suits most of the direct competitors. It is in the top rank at Lloyd’s, managing capacity across five syndicates for 2009 of £1.2bn, and is certain to have at its disposal another chunky resource in 2010.

It thus has considerable muscle either to write lines of 100% or to subscribe to risks in smaller percentages alongside other underwriters, and can offer substantial coverage limits. It must be remembered too that Kiln has been part of the mighty Tokio Marine Group since March 2008.

All this must pose a challenge for rivals at Lloyd’s, and for the mutual TT Club, although the competition is expected to be healthy rather than fierce.

Mr Rogers was previously managing director at Ipswich-based ITMU, a leading underwriting agency, and earlier in his career, he ran the freight liability unit at Allianz. He told Port Strategy that business for the marine and special risks division of syndicate 510 will come via three routes: the Lloyd’s and London market; Kiln Regional, based in Manchester, Leeds and Ipswich, working directly with brokers both in the UK and overseas; and Kiln offices in Europe, Asia and South Africa.

It might seem surprising that the traditionally conservative Kiln group would espouse a sector where premium rating has been uninviting for the last few years, but Mr Rogers says he has always found the speciality to yield good underwriting profits. He says: “A number of insurers have tended to focus on equipment and property rather than liabilities. Our focus will be on the operating liabilities of clients, rather than trying to cross over into non-marine risks.” Kiln will eschew business involving US ports, a nod to the high cost of claims in that jurisdiction; and elsewhere its model will suit ports that are looking for high service levels.

Mr Rogers says that the claims picture in the sector is much improved in the last 10 to 20 years, although globalisation has made it easier for cargo interests to pursue claims. Like other senior underwriters, he will be keeping a close eye on how much ports spend on safety and training to minimise the chances of accidents.