Britannia Risk Management Programme
Whilst Britannia's high quality of membership is founded on its rigorous underwriting policy, the maintenance of standards is fostered by the Association's risk management programme.
Selective Underwriting
As a mutual insurer, Britannia has always been concerned to preserve equity between Members by being selective in its choice of owners. This approach has earned Britannia a reputation for quality of membership. Notwithstanding this selective underwriting policy the number of ships entered in the Association has continued to grow. Most of this growth arises from the entry of additional tonnage from existing Members; such 'organic' growth both reflects and reinforces the selective underwriting policy, and is beneficial from a risk management perspective.
Active Risk Management
The proper selection and training of crew and an effective programme of ship maintenance and repair have always been considered to be the bedrock of a responsible ship owner and it is in these areas that the Association's risk management programme is concentrated. Whilst the Association's selective admission policy takes account of these issues, a changing operating environment and particularly economic pressures can lead to a Member compromising on standards. It is for this reason that the Association undertakes its ship condition survey programme. Ships are inspected on the basis of a standard programme; each survey is conducted by a specialist chosen from a panel of surveyors located in many of the major ports of the world. To ensure the best use of resources, ships to be inspected are chosen by reference to criteria such as Port State Control Detention Lists, IACS transfer of class data and the Association's own claims experience. The selection of ships for routine surveys also includes, from time to time, specific ship types or year of build where concerns, either within the Club's direct experience or within the wider shipping community, have arisen. Where the condition of a ship gives cause for concern, then under the terms of the Club's rules, cover may be restricted or indeed withdrawn if the appropriate corrective measures recommended by the Association are not taken promptly by the Member. A condition survey 'file' is closed only where all defects notified have been satisfactorily rectified. Senior representatives from the Underwriting, Claims and Risk Management departments meet regularly to review the operation of the condition survey programme, to ensure it is operating equitably between Members and to resolve any outstanding problems.
Crew Standards
The increasing separation of ship ownership from direct employment of crew has prompted the Association to improve its knowledge of the third party crew supply market. A programme is under way whereby a representative from the Association visits the main companies supplying crew to Britannia Members. The information gained is used by the Club's underwriters in assessing the risk profile of existing Members and the suitability for membership of prospective Members. This programme has concentrated on the crew market based in the Philippines but also encompasses other areas, including India and China.
Claims Handling
When a claim does occur, the Association's Claims Handlers have an important role in mitigating the loss falling on the Member. The Club's policy, of wherever possible handling claims with its own staff rather than using external lawyers, can be an important element in both securing an amicable settlement and reducing the cost of handling the claim. As a by-product of this approach, the Association's staff improve their understanding of the Member's business, thereby ensuring a high level of service.
Advice to Members
By the very nature of its activities, the Association is in possession of much useful information; impending maritime legislation, common problems encountered aboard ship leading to claims, training aids, safety devices etc. Whilst the Association must never assume the responsibility of the Owner for the safe operation of his ships, the Managers can and do keep Members advised of issues within these and other areas which will be of interest and benefit to Members. One vehicle for the dissemination of this type of information is our quarterly publication 'Risk Watch' sent to each ship entered in the Association.
The Managers are always pleased to receive suggestions on ways of improving the risk management service to Members.
 Risk Management Programme |