TT Club to peg premium rises despite hurricane damage


  • Date: 16/11/2005

16 November 2005

TT Club, the leading transport insurance provider, has revealed the latest estimate of its claims exposure from hurricanes Katrina, Rita and Wilma and announced its underwriting stance for next year’s policy renewals.

In a circular to members and brokers TT Club said that its latest combined gross claims estimate for the three hurricanes is approximately US$ 64million – a reduction on the estimates thought possible in the immediate wake of the storms. Through its strong reinsurance programme the Club is extensively protected and forecasts its net exposure will be approximately US$ 2.5 million after facultative, treaty and quota share recoveries.

However, TT Club is warning that reinsurers across the market have experienced record losses, and reinsurance rates are expected to rise sharply in 2006 for exposures in catastrophe areas. As a result, the Club says its reinsurance costs will increase in 2006 and those costs will have to be passed on to its members with applicable exposures.

Despite these concerns, TT Club stated that its existing policy of applying a five per cent claims inflation factor on renewals would be maintained, although there would need to be higher increases, estimated at up to 25 per cent for members with handling equipment, property and business interruption exposures in geographical areas prone to natural catastrophe events.

An exception will also apply for chassis insurance in North America, which will not incur the claims inflation factor.

The Club attributed its ability to mitigate premium rises to its restored financial strength, now back to pre-2001 levels and buoyed up by record 2004 results and positive projections for 2005.

ENDS


Notes for editors
The TT Club is the international transport and logistics industry's leading provider of insurance and related risk management services. Established in 1968, the Club's membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with industry-leading benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice. www.ttclub.com

For further information please contact:
Ian Lush, Marketing Director, TT Club
Tel: +44 (0)20 7204 2642
E-mail: ian.lush@thomasmiller.com
www.ttclub.com

Media contact:
Peter Owen, ISIS Communications
Tel: +44 (0)1737 248300
E-mail: info@isiscomms.com
www.isiscomms.com

A full archive of all TT Club news releases and photographs is available from the ISIS Communications Press Room at www.isiscomms.com

Through Transport Mutual Insurance Association Limited and TT Club Mutual Insurance Limited, trading as the TT Club. TT Club Mutual Insurance Limited, registered in the UK (Company number: 02657093) is authorised by the Prudential Regulation Authority and regulated in the UK by the Financial Conduct Authority and Prudential Regulation Authority. In Hong Kong, TT Club Mutual Insurance Limited is authorised and regulated by the Hong Kong Insurance Authority, in Singapore by the Monetary Authority of Singapore and in Australia by the Australian Prudential Regulation Authority. In the United States, TT Club Mutual Insurance Limited is approved as a surplus lines insurer in all states and is accessible through properly licensed surplus lines brokers. The registered offices are: 90 Fenchurch Street, London, EC3M 4ST.

Through Transport Mutual Insurance Association Limited, registered in Bermuda (Company number: 1750) is authorised and regulated in Bermuda by the Bermuda Monetary Authority and is authorised in the UK by the Prudential Regulation Authority and regulated in the UK by the Financial Conduct Authority and Prudential Regulation Authority.

The UK VAT Identification number for Through Transport Mutual Insurance Association Limited is: GB 564 5244 35 and for TT Club Mutual Insurance Limited is: GB 564 3375 30. The Italian VAT Identification number for TT Club Mutual Ltd is: 03627210101.