The Japan P&I Club and Tokio Marine Insurance Singapore (TMiS) have launched a new protection and indemnity joint venture.
From this month the new company, J-Collaboration, is offering P&I and related services to Japanese shipping companies in Singapore.
The move comes in response to the increasing number of Japanese shipping companies shifting key ship management and business operations out of Japan in recent years.
The Lion City has been a popular destination for tax and other operational reasons.
“As Japanese shipping companies are showing an increased presence in Singapore, this joint project will enable us to provide meticulous services as an alliance of Japanese insurers,” the Japan P&I Club said in a statement.
TMiS, the general insurance arm of the Tokio Marine Group, is already offering hull and machinery insurance to Singapore based shipowners.
Under the joint venture, the Japan P&I Club will provide P&I insurance products in Singapore as a lead insurer, and TMiS will participate in underwriting as a co-insurer.
TMiS will also take charge of sales and marketing, while the Japan P&I Club will be responsible for claims handling.
The Japan P&I Club is not the first P&I mutual the Tokio Marine Group has tied up with. The Standard Club also has a commercial relationship with Tokio Marine and Nichido Fire Insurance, the Japanese arm of the Tokio Marine Group, to underwrite P&I business in Japan.
The joint venture writes around 8% of the P&I business in Japan. Last year the two companies celebrated the 20 anniversary of their partnership and opened a claims office in Tokyo.