Britannia P&I and The Korea Shipowners’ Mutual Protection and Indemnity Association (KP&I) have announced a collaboration to provide cover to South Korean shipowners.
The agreement, called Korea-Britannia P&I Collaboration (KBC), will involve cover on a mutual basis excess of a primary $500,000 layer from KP&I.
KP&I will market the facility and handle claims within this layer, while Britannia P&I will assume responsibility for handling any larger or complex claims with a potential to exceed the sum.
Britannia P&I will also issue all compulsory certificates, guaranteeing compliance with international maritime conventions.
Owners entered in both clubs
Shipowners with vessels entered in KBC will become members of both Britannia P&I and KP&I.
Andrew Cutler, Britannia P&I’s CEO, said: “Britannia P&I has a proud tradition of working closely with Korean shipowners, many of whom are among the club’s longest serving members.
"KBC brings together Britannia P&I’s and KP&I’s shared values of excellence in service and reflects our common desire to support the Korean shipping market.”
Britannia P&I has 114m gt of mutual tonnage from over 240 members across 30 countries. In August, S&P re-confirmed its A (Stable) rating with financial strength above the AAA level and ‘exceptional’ liquidity.
KP&I, rated A- (Excellent) by AM Best, has tonnage of 22.6m gt and 253 members.
Important milestone
Bay Moon, COO of KP&I, added: "This new collaboration agreement with Britannia P&I is an important milestone in the development of the Korea P&I Club and is significant before the 20th anniversary of our founding in 2000.
"KBC will combine KP&I’s reputation for friendly and efficient service with Britannia P&I’s widely recognised financial strength to meet the ongoing demands of a vibrant and dynamic Korean shipping industry.”
In October, TradeWinds reported that Britannia had decided to ditch protection and indemnity insurers’ long-standing tradition of announcing an annual general increase in premiums.
Instead, it will determine pricing based on an individual assessment of each member’s claims record and risk profile.
The move, which also applies to freight, demurrage and defence cover, moves away from the model of P&I mutuals announcing a uniform policy on premiums for all members in the autumn, ahead of a February policy renewal.
