JLT launch P&I rating engine in Athens

23 August 2017

In June 2017, JLT Specialty held its inaugural marine conference in Greece. It took place at the National Yacht Club of Greece in Piraeus and was attended by more than 130 Greek shipowners and representatives of firms that JLT Specialty works with in the region. The theme of the event was John F Kennedy’s observation: “In a time of turbulence and change, it is more true than ever, that knowledge is power.”

Mark Cracknell, Head of P&I in JLT Specialty’s Marine division, says: “We held the conference because we wanted to engage with our clients in Greece and share some useful insights about the future of insurance and professional services for the Greek ship owning community, particularly in the light of what then seemed a likely ‘hard Brexit’.

“Another reason for hosting this event was that we have a very strong hull and machinery presence and we are looking to expand our footprint in P&I in Greece.”

The conference included presentations and panel discussions, followed by an evening reception. It was facilitated by internationally acclaimed broadcaster and journalist Joanna Gosling, who has had a very successful career in television and radio working for the BBC, Sky and ITN.

The event started with a presentation by Paul Upton, Head of Strategy in the Marine, Energy & Political Risks division at JLT Re, about the prospects for the marine (re)insurance markets as signs emerge that the long ‘soft’ phase of the pricing cycle may be coming to an end.

This was followed by a panel interview with Hugo Wynn-Williams, Chairman of the International Group of P&I Clubs; Sotiris Leontaris, Head of Trade and Investment section at the British Embassy Athens; and Robin Parry, Partner at Ince & Co LLP in Piraeus. Gosling hosted the discussion, focusing on Brexit and its potential implications for the UK financial and professional services industries, which have a long record of serving the Greek shipping community.

Joanna Gosling also hosted a lively panel debate with the motion ‘This house believes the P&I clubs have become complacent, focused too much on the accumulation of their members’ funds and insufficiently attuned to the unprecedented crisis facing the industry they serve’. At the outset of the debate, the motion – which was tracked live with the audience via an online service – was in the balance, but in the end it was emphatically defeated.

Cracknell says: “We were very pleased with the turnout from the Greek shipping community – especially as this was our first event of this type, so they did not know what to expect. Everyone we spoke to said they found it interesting and informative.”

Menelaos A. Pangalos from Chios Navigation (Hellas), who attended the event, says: “I thought it was a great choice of venue; it is always a pleasure to attend the Yacht Club for this kind of event. It was nice to have a combination of individual speakers on specialist subjects, and the panel/debate format as well. It was also very refreshing to have a professional facilitator to ‘compere’ the event, and Joanna Gosling was excellent in this regard.

“Overall, the event struck a nice balance between being informative and entertaining. It also provided a great opportunity to catch up with industry friends and colleagues.”

Because of the success of this event, JLT Specialty is looking to hold future events in this format in Greece and around the world, tackling issues relevant to local markets such as New York and Hong Kong.

JLT LAUNCHES NEW P&I RATING ENGINE

At the conference, JLT launched its new Protection & Indemnity (P&I) Rating Engine – a pricing tool available exclusively to JLT P&I clients, which will help them better understand how P&I premiums are calculated.

Ben Dillon, a Partner in JLT Specialty’s Marine division, gave a presentation in which he explained that P&I club rating models include forecasts of costs the clubs expect to incur, particularly for ‘pool’ claims and the cost of abatement, which have a significant effect on P&I premiums. JLT’s P&I Rating Engine will give clients an independent analysis of those cost forecasts, enabling a more balanced discussion on the critical matter of what a fair P&I premium should be.

Cracknell says: “This was the hottest topic at the conference, because people think it might save them money. We think that this is a unique tool; other brokers tend to use very basic models or borrow them from underwriters whereas, working with the analytics team in JLT Re, we have used our own data to devise actuarially sound models that offer an informed but independent view.”

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For further information please contact Mark Cracknell, Development Executive on +44 20 7558 3816 or email mark_cracknell@jltgroup.com

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