TT Club reports lower claims

MARITIME insurer TT Club said that insurance claims were lower in 2016 than in 2015 despite an unstable shipping market and the bankruptcy of South Korean carrier Hanjin Shipping.

In a statement which did not provide specific claims figures, TT Club said its surplus and reserves grew by $5 million in 2016, and that it expected good financial results to continue this year.

TT Club insures 80 percent of all maritime containers and has an insurable interest in at least 45 of the world’s top 100 ports.

Strong performance for the insurer came amid “instability around the world” that shows little sign of lifting, it said.

Fewer attritional claims costs were imposed on the club than in 2015, the year of the Tianjin, China explosion (which destroyed thousands of containers), in spite of Hanjin Shipping’s bankruptcy in 2016, which led to claims from transport operators and container lessors.

TT Club attributed last year’s claims reduction down to its improved forecasting ability for claims and the improved quality of its business.

It also highlighted the role it played in promoting better safety practices, collaborating on the International Maritime Organization/International Labor Organization Code of Practice for Packing Cargo Transport Units (CTU Code).

Charles Fenton, Chief Executive of TT Club, said, “In enduringly trying economic circumstances, TT Club continues to perform strongly and retain its financially strong position and maintain its AM Best Excellent A- rating.

“As we continue to work towards keeping insurance costs down, we remain committed to working with members and brokers to maintain our loss prevention and service levels to sustain our position as one of the world’s leading providers of international transport and logistics insurance.”

The future may be less rosy for the insurer, however, as Brexit, the exit of the United Kingdom from the European Union, would mean TT Club would lose regulatory permission to do business in EU countries.