International Group of P&I Clubs’ Reinsurance: What really matters to ship owners? Christopher Brown Director of Underwriting, Thomas Miller P&I, UK P&I Club

1.Pooling “at cost” 2.Value for Money in RI purchase 3.High Limits of Cover 4.Scope of cover - meeting change 5.Security of top rated reinsurers 6.Prompt and certain compensation 7.Fair allocation of costs and losses 8.Consistency of Pricing from year to year 9.Facility to admit discretionary claims 10.Financial security recognised by governments What matters most to shipowners?

Pooling Large Losses “at cost”

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Consistency of pricing and value Source: Miller Marine Average premium per USD/GT before loss record application and other costs to Hydra, War Risk, etc USD billion limit of cover

Source: Miller Marine Efficient and Secure purchase 18 of world’s top 25 reinsurers participate 90 Participants in 2014

Adapting to change

Draft not verified Relative Group RI premium and Claims Group Allocation principles seek balance

Scope of Cover --- adapting to change Source: Miller Marine

Fair Allocation of costs

Relative Group RI premium and Claims Group Allocation principles seek balance – position late 2013

1.Pooling “at cost” 2.Value for Money in RI purchase 3.High Limits of Cover 4.Scope of cover - meeting change 5.Security of top rated reinsurers 6.Prompt and certain compensation 7.Fair allocation of costs and losses 8.Consistency of Pricing from year to year 9.Facility to admit discretionary claims 10.Financial security recognised by governments What matters most to shipowners?

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