PRICE WAR RISK

“P and I underwriters excluded war traditionally, and now created there's war clubs or all would step in and offer limited war cover. The P and I Clubs, as part of our collective reinsurance buying, we buy reinsurance for war P and I and every ship owner who's entered in any IG club every year pays a small amount. It's not allowed, but they pay a small amount for that coverage, so we fill that gap.”

“Level in which, yeah, mutual insurances are there are rules in place to deal with certain things like that. Like you actually it's true, you actually don't want because P and I has a long tail, right, so like some things to take some claims are still open ten years after and sometimes even longer. So that's why, actually the mutual system allows for a multi year openness. But yes, there are there are we you know, we do have agreements in place that protect us from things like that.”

“Traditionally, war has its own special sector of war underwriters war insurance. The p and I standard policy excludes liabilities that arise out of war acts. However, there is an excess level of cover that is offered by the P and I club, simply because the standard policies are limited by the value of the vessel.”

“The P and I Club, which means Protection and Indemnity, is a collective. It's a not for profit, accessible mutual association. It's not a commercial insurer, and it basically, historically is a club that brought together ship owners in the industry that we're trying to fill a gap. So they came from a need for society. And really what clubs do is while they ensure the owner, they are protecting society because they are ensuring the owner.”

“Just to kind of back up a bit, and what the cancelation means. It's really a cancelation of the rate, not of the cover. Everyone was saying, oh, these vessels are trapped because they don't have insurance, and you know Lloyd's in London is almost doing this to get back to the US. First of all, all those not all, but many of the underwriters at Lloyd's are American companies. So it wasn't the UK saying, you know, we're going to get the US back for this.”

“Insurance was always available, it's just whether you wanted to do it really ultimately, and the operators and our members that we spoke to all made it very clear that the safety of their crew was much more important and then everything else. And the operators and our members that we spoke to all made it very clear that the safety of their crew was much more important and then everything else.”

“So while we are not the primary people or group that's responsible for training crews, because there's crew managers, the operators themselves have to do that. The training that they get in the schools that they go to and stuff are really what we do though, is based on our analysis of our claims. Though we identify gaps, we identify issues, we identify trends, and then we do actually have programs that enhance training.”