Insurance Day Awards - we've been shortlisted for the 2012 'Insurance Inititative of the Year' Award
TT Club’s Port Risk Matrix – a novel approach to mitigating risk
TT Club’s Port Matrix has redefined the approach of ports to risk and greatly strengthened their operational capacity to build long term and effective contingency plans.
“A ship was ordered to remain anchored outside a port during gales and huge seas. The anchor snagged and snapped an undersea pipeline severing four months of ethane flow.” Sydney Morning Herald - March 24, 2010
Common ship-handling decisions rarely result in incidents like this, but when they do the financial and commercial consequences can be significant.
TT Club identified that many ports fail to maintain expertise in-house to handle what can be extremely complicated, high profile and politically sensitive situations. We identified that this expertise had never been offered before and as a result we created an entirely new contingency planning model.
Using our extensive experience in handling claims we identified key scenarios where ships could become unintentionally displaced including extreme weather, wharf damage and ship groundings.
- We reviewed each scenario and considered the systems, processes and people needed to minimise exposure.
- We assessed the associated risks i.e. media attention and the business exposure if not mitigated, including reputational damage and loss of business.
- The ideas were developed into a user-friendly Risk Matrix which customers could incorporate into emergency response plans.
Additionally we collaborated with brokers to devise a series of facilitated workshops which embedded the matrix practically into management planning. These involved operational and senior managerial staff and used real claims examples to illustrate the incidents that could occur.
- This year we’ve held ten workshops, with a further six booked.
- As well as delivering immense credibility, the initiative has contributed to the acquiring of two large clients.
“I have been an insurance broker for over 20 years. This is the first risk inventory I have seen prepared by an Insurer that is specifically tailored for ports. The comprehensive tool assists me with my clients in recognising risk categories and how best to mitigate these exposures.”
Mark Rankin, Principal, Marsh Limited
“We found the workshop innovative and purposeful. Many issues were identified, and we are now developing mechanisms to mitigate these risks. Once the mechanisms are developed, there will be on-going monitoring to ensure we sustain the value of this important strategic approach.”
Kedea Vaname, Risk & Insurance Coordinator, Papau New Guinea Ports Corporation Limited
“We really value this proactive, practical and constructive offering. The information relating to action steps has been incorporated into our claims manual, our global operations procedure, and formed the basis of a specific internal risk-bulletin to all our operations”
DP World Head Office
The matrix and workshops have redefined a port’s approach to risk, identifying reductions in exposure and assisting ports in building long term and effective contingency plans.
This initiative could be replicated by any insurer for any industry sector. As well as delivering exceptional service it will materially improve the way businesses manage their risk exposure.