Strike Insurance Europe Transfer
Over the last few years, Standard Club has grown the underwriting and business development of the former Strike Club and changed its operational and cost structures to make them more efficient.
The Shipowners’ Mutual Strike Insurance Association Europe (‘SIE’) became part of the Standard Club group with effect from 1 February 2019 following approvals by members in general meetings.
SIE ceased underwriting on 20 February 2020 and SIE has continued to meet its obligations to members insured for the 2019/20 and earlier policy years, with Standard Reinsurance (Bermuda) Ltd supporting it as quota share reinsurer. From 21 February 2020, former SIE members have been able to buy strike & delay and war risks insurance from other insurers in the Standard Club group.
SIE is presently seeking approval from Luxembourg and Irish insurance regulators to transfer its insurance obligations to The Standard Club Ireland DAC (‘Standard Ireland’). Standard Ireland, like Standard Reinsurance (Bermuda) Ltd, has a published “A” financial strength rating from the financial rating agency Standard & Poor’s. Following a successful transfer of its obligations to Standard Ireland, the individuals and teams currently handling claims for former SIE members will continue to undertake that work on behalf of Standard Ireland, and SIE will be liquidated.
As part of this process, SIE and Standard Ireland are publishing notices along the lines set out below in various official gazettes and newspapers.
TRANSFER OF INSURANCE RIGHTS AND OBLIGATIONS
The Shipowners’ Mutual Strike Insurance Association Europe, established at BP 2217, L-1022 Luxembourg, hereby informs interested parties that it is transferring its rights and obligations under or pursuant to contracts of non-life insurance to The Standard Club Ireland DAC, established at Fitzwilliam Hall, Fitzwilliam Place, Dublin 2, DO2 T292, Ireland.
The transfer referred to above relates to all non-life insurance contracts that belong or have belonged to the non-life insurance business carried on by The Shipowners’ Mutual Strike Insurance Association Europe, BP 2217, L-1022 Luxembourg.
The transfer will become effective for all stakeholders with effect from the date the transfer is approved by the Luxembourg insurance regulator, the Commissariat aux Assurances.
The Standard Club Completes 2021 Renewal
The Standard Club has completed its renewal negotiations and is very well positioned to continue to support its members through these unprecedented times. The club has successfully renewed 95% of the expiring portfolio and welcomed a small number of high-quality new members. Many existing members have expanded their entries and in a number of cases consolidated their fleet into Standard from other clubs.
While the 2020/21 policy year is forecast to perform better than 2019/20, it is still anticipated to result in an underwriting deficit. This is primarily due to the frequency and cost of large claims arising within the International Group Pool, which has affected all clubs, but it also reflects the general low level of premium rating. Despite market turbulence arising from the pandemic, the defensively positioned investment portfolio has made a positive contribution. Overall, the club’s finances remain strong and reserves will remain in excess of regulatory and rating agency requirements.
The board took a decision early on to address these issues and agreed a budget for the 2021 renewal to ensure breakeven underwriting can be achieved in the years ahead. The club set a general increase to ensure fairness among members alongside a detailed analysis of individual members’ rating adequacy, terms and deductibles against their historic and forecast claims exposures.
Mark Collins, Director of Underwriting at the Standard Club said: “2020 was a challenging year for all and we have continued to support our members through these difficult times. We, like all clubs, have seen a greater frequency of expensive market losses than predicted which has had an impact on underwriting”.
“We have successfully completed our renewal in line with the budget set by the board with a view to returning to breakeven underwriting, so we can continue to support our members in the long-term.
“It has been a fascinating first 12 months in my new role as Director of Underwriting and I never would have imagined having to oversee my first renewal in a ‘virtual’ environment. I am proud of the result we have achieved and am fortunate to work alongside a talented and experienced team who havethe opportunity to support such a high quality and loyal membership”.
Standard Club’s Piraeus office reopened
Following the earthquake which took place in Athens on Friday, 19 of July, we are pleased to inform brokers and members that the office has been reopened and business is as usual.
If you need to speak to a member of the team, you can find their contact details here.
In the interim period, staff were able to work remotely, and we are pleased to say that business was not interrupted by this incident.
We hope that our friends in Athens and the surrounding area were similarly unaffected by the earthquake and remain safe and well.