George Tsavliris is strongly associated with one of shipping’s largest salvage firms, Tsavliris Salvage. But it is less well known that he spent his early career as an underwriter in London.
Fifty years after underwriting his first ship, Tsavliris has returned to the marine insurance business as non-executive chairman of Oneglobal Greece & Cyprus.
Oneglobal Greece & Cyprus, which says it is the first dedicated marine broker in the two countries with a Lloyd’s of London licence, has built a client base representing 850 ships, including 350 that it exclusively handles.
The firm covers most of the bases in marine insurance but is strongest in the loss of hire, and hull and machinery markets.
It said it has acquired substantial accounts, with Tsavliris using his network to help expand its Greek and Cyprus client base, and chief executive Manos Sofronis working with New York-quoted Greek companies.
The Lloyd’s licence — and the fact that parent company Oneglobal Broking is London-based — are obvious advantages, and Sofronis and Tsavliris want to support the London marine market.
There has been a steady withdrawal of capital from the market over recent years due to poor rates, but Oneglobal Greece & Cyprus believes it is beginning to recover.
Sofronis said: “London is the capital of marine insurance and we want to maintain that.
“The capacity in London is coming back. From the end of last year, we had new companies starting with big capitalisation. George and I have a mission to bring back the good relationship that that marine market has with underwriters.”
Tsavliris would like to see a revival not only of capital to the marine insurance market but of some traditional London values.
Message to London
“We do want to give London a priority, but we also have to have a message to London: Help us to help you,” Tsavliris said.
“A lot of the old-timers have left the market and they have not necessarily been replaced by the younger generation who have the calibre, substance or background to follow through a claim.
“That is where we can come in and say: ‘You are doing all right on rating but you need to get someone in to handle the claims’.”
A recovery in capital to London would also ease the rate increases seen over recent years and help Oneglobal Greece & Cyprus win better deals for clients.
Tsavliris said marine insurance premiums are still incredibly low. He can point to the first vessel he covered in 1971, a $3m tween-decker newbuilding. Its annual hull and machinery premium was $165,000. Today, the same premium would cover five handymax bulk carriers worth $150m.
Tsavliris said owners can understand the need for higher rates.
“The underwriting sector has been ridiculously low and the owners themselves have to maintain a code of ethics: that you can’t expect nothing for nothing; you have to pay something commensurate with the risk; and they are more than aware of what the risk is. There must be a balance,” he said.
Tsavliris’ in-depth understanding of Greek and Cypriot owners has helped shape the company’s approach to the local market. He believes local owners still prefer the personal touch rather than the more remote approach of the giant broking houses.
“The traditional Greek owner always had a close personal relationship with the guy who was handling his placings and with the guy who was handling his claims, and that has started to be eliminated from the market,” he said.
“When you have a company that is so big and so impersonal, it causes the owners to distance themselves from the broker.
“But the key players could not work with that type of company. The traditional shipowner also wants to sit back and have a coffee with his insurance broker.”
