TT Club’s four-year plan hinges on insurance volume growth
- Date: 23/06/2006
23 June 2006
THROUGH Transport Club, the international transport mutual, is aiming to increase the volume of insurance business with logistics and transport operators under its new four-year business plan.
The mutual’s chief operating officer Colin Lewin said TT Club would target medium-sized companies which offer logistics services such as labelling, cross-docking, and merge in transit and where there is already a risk management approach to the business.
Speaking in Hong Kong, he added the targeted firms would be similar in scope to Asian-headquartered logistics operators Baltrans Holdings and Kerry Logistics, which have a strong international presence.
Mr Lewin said the move to win more logistics-related business was a “challenge” but it was intended to strike a more equitable balance in premium income while expanding the club’s involvement in the transport and logistics industry.
He said about 50% of the club’s US$179.3m premium income last year came from ports and terminals, with about 20% from transport and logistics and the balance from shipping operators.
The business plan, which set out the club’s management strategy until 2009 and has just been approved by the board, also called for an overall improvement in the club’s capabilities while seeking “cautious, incremental and steady growth,” according to Mr Lewin.
As part of this aim, Mr Lewin was in the former British colony to confirm a management reshuffle that will see Andreas Mueller, regional director for Asia Pacific, promoted to regional managing director for Europe.
This meant the club’s business in UK, Ireland and continental business will again merge after being separated some time ago. Mr Mueller will also have responsibility for the equipment claims and wholesale broker’s teams while maintaining an interest in TT Club’s South Korean business, or “looking after my Korean friends,” as he described it. He will take up the newly created post in September.
Andrew Kemp, currently based in Singapore as managing director for south east Asia, will take over from Mr Mueller, moving to Hong Kong on July 12 for the official handover on August 1. Colin Fordham, managing director of TT Club’s Singapore office will be promoted to Mr Kemp’s position after the Monetary Authority of Singapore recently agreed the move.
In Australia, Marcus John has become the sole managing director in Sydney following the departure of Robert Hammersley.
Mr Lewin, who left Hong Kong in 2002 to become chief operating officer and acting regional director and claims director for Europe, said Mr Mueller’s appointment as European regional director reflected the evolution of the chief operating officer’s job.
He said the initial focus after arriving in London had been on financial recovery after the club was downgraded to B++ (very good) category by ratings agency AM Best.
After four years, this has largely been achieved after the ratings reclassified the club as A- (excellent) in early May.
Consequently, Mr Lewin will focus on implementing the four-year business plan, improving the club’s competitive edge by streamlining processes and controls and overseeing regulatory and compliance issues and systems development.
As a result there was not enough time to cover the European business, hence Mr Mueller’s promotion.
Article published in Lloyd's List on Friday, 23rd June 2006
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