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Flexibility is Charterama’s key to bucking a declining P&I market

Charterama joint founder Lucien Lesuis — whose experience includes working at Glencore Grain and RaetsMarine — argues that the charters liability market can be outperformed

According to leading insurance broker Arthur J Gallagher’s 2017 protection-and-indemnity commercial market review in TradeWinds’ 17 November edition, the fixed-premium market is still under pressure. A further drop in rates of between 1.5% and 3% can be expected.

However, taking into account only the charterers liability, as opposed to fixed-premium owners’ P&I, this may be a too optimistic estimate. Judging from premium income reductions of up to minus 10%, compared with the increased number of vessels on risk of about 12%, there seems to be a much bigger average premium reduction for charterers liability.

However, not all charterers’ liability providers are suffering badly. For the second year, Charterama has outperformed the market, managing to maintain the same premium income with even a smaller number of vessels on risk. Also in the five-year cumulative result, Charterama heads the troops with a comfortable 38.4% growth.

Charterama was considered a new player in the market but has now been active for almost 10 years. It can be ranked among the more established companies, slowly catching up with the Charterers P&I Club and RaetsMarine, which were both established in the mid-1990s. Charterama has its main office in Rotterdam, with a claims support office in Hong Kong. Royal & Sun Alliance has been offering security for the agency since 2012.

We are not price fighters but, at the same time, we have to live with the reality of a soft market. We don’t write premium for the sake of writing volume; the total number of entered vessels has actually decreased slightly. Of course, premium is important to our clients. But, in the end, they are looking for protection when they have a claim and for support and a solution when they have a freight, demurrage and defence issue.

Although compliance is a magic word in this day and age, we find clients are looking for flexibility — people who listen and have the experience to understand and offer workable solutions — without the disadvantages of often bureaucratic and slow operating corporates or large companies asking irrelevant questions.

Please click on the image to see the article. This article was published in Tradewinds on 1 December 2017.

Exclusively focused on Charterers Liability insurance

Why Charterama?

In the day to day hectic of shipping you don’t need problems. Unfortunately, sometimes problems do occur and in that case you need quick solutions and someone who understands you.

Charterama is the Charterers liability solution and understands your business.

With our experience in the shipping industry, on board ships, in ship operation or in commodity trade, you benefit from our hands-on and pro-active mentality and approach.

Claims issues will be picked up without delay; you will speak directly to a specialist who knows who you are. And your quotation and your documentation will be with you within 24 working hours, or even the same day.

Contact our office in Rotterdam, Hong Kong or in Paris.

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