Rearranging deckchairs on the Titanic

Blog | 20 March 2012

Dan-Day-Robinson

We all know that since Basel was brushed-in, the TCPR market boomed. The quick action of Lloyds to change policy wordings to make insurance a guarantee for the bankers (when indeed it is not a guarantee) together with the dropping of the “five major powers” clauses, made the political risk class of insurance an absolute “must” for bankers wanting to shave their regulatory risk capital requirements (no shaving jokes please...).

Now, did you ask yourself if political risk is covered in marine cargo policies? And what about kidnap and ransom? Wasn’t there always something in the marine policy to cover piracy on the “high seas”? Answers on a postcard to Clarissa at TFR please (an email will do - Ed).

Last week, in a seminar hosted by my friends at Watson, Farley and Williams, there was much talk of insurance markets, how risks are evaluated by underwriters and how the “insurance boys and girls” as John MacNamara calls them have done so well in recent years. The thing I really wanted to mention was the comment, however, that when it comes to marine cargo insurance, bankers tend to “tick the box” without reading the small print. Here is my blog point for today - maybe it is time to really look at the finer detail of policies and see where marine cargo ends and other cover begins.

Comments

Hello Dan, very topical and I do love your blogs. Now Marion Bell of rival firm SNR Denton wrote a feature in our current April edition on this very thing!

So for those of you who want to read more about checking the small print of insurance documents please have a look at her article "Fit for purpose - how watertight is your credit insurance policy?". You can read it by clicking here!

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