UK Club launches fixed premium cover for smaller craft

THE UK P&I Club has launched a new fixed premium line of protection & indemnity cover aimed at smaller vessels, under the branding of “UK Fixed”.

Targeted vessel types include supply and support ships, tugs, utility craft and small shortsea and general cargo vessels, as well as inland watercraft.

The move follows the decision of manager Thomas Miller to integrate its Thomas Miller Specialty Marine unit into the UK Club, with the two underwriting teams being merged.

Owners signing up for UK Fixed will also benefit from the P&I club’s loss prevention advice.

UK Club chief underwriting officer William Beveridge said: “The launch of UK Fixed is an important milestone in enhancing our commercial portfolio and expanding our membership base.

“Through significant efforts to align our operations, risk appetite and standards, we have positioned the fixed premium portfolio for sustainable and profitable growth.”

As the third-biggest affiliate of the International Group, the London-based marine mutual has a market share by tonnage of about 11%.

Smaller vessels have been a consistently profitable specialism for the Shipowners’ Club — known as SOP — allowing it to turn an underwriting profit even in years when most other clubs lose money.

However, SOP executives like to point out that small vessels can sometimes generate big claims, and that vessels entered with club are covered by IG pool scheme, providing for claims in excess of $2bn in the theoretical event such a payout would ever be required.

Owners not requiring pool scheme cover at that level have a range of fixed premium offerings from which to choose.

Commercial products include Hydor, QBE’s British Marine and Aurora, recently acquired by Markel.

Clubs are also clamouring for a slice of the pie and most IG members offer fixed premium product. NorthStandard’s Sunderland Marine division and the American Club’s Eagle Ocean Marine are just two examples.