IIFA Seminar
Thursday 21st October 2010
Dublin
Marine Insurance
• Dynamics and challenges in the (insurance) market
– Trade & Insurance markets
• Trade Facilitate & Starr Marine partnership
• On line Trade Facilitate applications
Global Marine Insurance Market
Total Reported: 22,9billion USD
Total Estimated: 23,6billion USD
13%
29%
7%
Global Hull
Transport/Cargo
Marine Liability
Off Shore/Energy
51%
Source: IUMI 2010
Dynamics of the insurance market
• 21st Century
• Technology and global trade
• Technology and Insurers
– An acronym?
– Opportunities
• Globalisation
• Trade
• Services
– FOS – Freedom of Services
– Lloyd’s Franchise board
Nature of the marine insurance market
• ‘To follow’ principle
– Trade
– Needs
• Inherent part of many trade transactions:
– Contract of
• Sale
• Carriage/transport
• Credit (LC/structured/...)
• Insurance
– INCOTERMS
• Innovation
Nature of the marine insurance market
• Sensitive
– Trade shocks
• Seaborn trade contracted -4,5% in 2009
• Container shipping -9,4% in 2009
– Freight rates
• Baltic Tanker freight index
• Dry cargo freight rate index
Source UNCTAD
Challenges of the market
• Cargo:
– Reduction in insured values
– Upwards adjustments of 07/08 claims reserves
– Profitability
• Hull
– Loss for 14 consecutive years
• Off Shore Energy
– Volatile
Challenges of the market
• Regulatory
• Compliance
– Trade restrictions
– Sanction regimes
• Solvency II
• Transparency
• Performance & efficiency
Solvency II
• Revised solvency regime for EU (re)insurers
• Implementation of solvency requirements
– Improved reflection of the risk
– Consistent supervisory system EU
• Requirements for
– Capital adequacy & risk management
– Reduction likelihood of failing (re)insurer
Trade Facilitate & Starr Marine partnership
How to manage the challenges?
• Innovation
– ‘Must have’
• Service Industry = facilitating role
• Insurance is never a client’s core business
• Define values/benefits & key differentiators
– Time
– Accuracy and efficiency
– Cost saving
– Performance
– Growth
Trade Facilitate & Starr Marine partnership
• How?
– Smart
• Use of technology
• Improved service
• Simple
– Quick win
– Strong partners
• Field Experience
• Standing reputation
• Thinking ahead
– People
• Advise and assist
– From constraints to opportunities
Insurance application
• Why Cargo insurance?
– Capital at risk
– Unforeseen element
– Ultimate requirement
• Title/holder of the insurance certificate
• No liability constraints
– Limitation of (carriers) liabilities
• Hague visby / Rotterdam
• Warshau
– Short tail
• Financial burden for undamaged cargo:
– GA contributions
Insurance application
• Accredited Members
• On line
– A few clicks away
• Transactional or Structured
– Personal designed program
• Easy acces to highest security
– Lloyds A+
• Instant delivery
– Pdf secured and unique certificate
– Electronic negotiable document
• On line claims notification
• Immediate acces to local surveyor
Conclusion
• Marine Insurance not always on the shopping list
• Differentiator
• Premium service
• Financial security
• Keep it simple
Company information
Starr Underwriting Agencies, LLC
• Starr Underwriting Agencies, LLC (SUAL) is a wholly owned subsidiary of CV Starr
and the parent company of the Starr Underwriting Agencies
• The Starr Underwriting Agencies:
– C.V. Starr & Co. (C.V. Starr)
– Starr Aviation Agency, Inc. (Starr Aviation)
– Starr Global Accident & Health Insurance Agency, LLC (Starr Global)
– Starr Marine Agency, Inc. (Starr Marine)
– Starr Specialty Lines Insurance Agency, LLC (Starr Specialty)
– Starr Technical Risk Agency, Inc. (Starr Tech)
Starr Underwriting Agencies, LLC
• Internationally, the Starr Underwriting Agencies operate as divisions of:
– Starr Underwriting Agents Limited
– Starr Underwriting Agents (Asia) Limited
• The Starr Underwriting Agencies are projecting to produce approximately
$2.1b in gross premiums in 2009 and expect to employ more than 700
people globally
• The Starr Underwriting Agencies have decades of experience in managing
complex risks
The Starr Underwriting Agencies Distribution Network Locations
Starr Marine
• Formerly known as the American International Marine Agency.
– Founded in 1945;
– Worldwide underwriter of Ocean Marine business and exclusive
Managing General Agent (MGA) for the AIG group of Companies
for over 60 years.
• In 2006 our agreement with AIG ended and the entire underwriting,
accounting, loss control and systems team at AIMA moved as one to
what is now Starr Marine Agency Inc..
• In July of 2006 we announced the formation of our new partnership with
the Berkshire Hathaway Group of Companies as their MGA for Ocean
marine business.
• In October of 2006 we opened our first office overseas and Syndicate
1919 began writing business at Lloyds.
Starr Marine (continued)
• In November of 2006 American International Marine Agency announced
our name change to Starr Marine Agency, Inc..
• In 2007 we opened an office in Hong Kong and further expanded into
Beijing and Shanghai.
• In 2008 we opened offices in Belgium, The Netherlands, Italy and
Germany and we have plans for further expansion in the near future.
• We continue to write, as we have throughout our history, a full
compliment of Ocean Marine Coverage’s - Cargo, Hull / P&I and a
variety of primary & excess liability covers.
• Agency services also include claims management, subrogation, loss
control & accounting.