2. Overview All Inventory Covered Anywhere Anytime
For All Risks – Including CAT

3. Scope of STP Coverage Transits of supplies and raw materials
Overseas transits to International storage locations
Storage of
pre-manufactured goods
Notes:
In transit to final destination / customer
Factory
Finished goods in storage
Domestic transits to in-country storage locations

4. STP – The Myths The STP product came and went some time ago
The STP product is opportunistic, and not a long-term solution
The STP product needs a significant ocean cargo exposure.
Notes:

5. STP – How Can It Help Customers?
By working in conjunction with the existing property structure the STP provides:
Extra capacity for the real property structure
Better use of property market capacity.
Providing additional capacity for catastrophe perils.
Lower deductibles and minimal % of value deductible.
Flexible product, utilized on a standalone basis, a dual cover basis, an excess basis or as reinsurance support.
Eliminates the need to purchase a separate, standalone cargo policy.

6. STP – What is it?
A single worldwide policy providing “all risks” coverage.
Covering cargo and inventory anywhere in the world.
Provides limits for “any one loss any one Location or Conveyance” .
Utilizing marine market as opposed to property market.
Capacity up to and in excess of $500,000,000.
Coverage can include war risks, strikes, riots, civil commotions and malicious damage risks, and terrorism.

7. STP – What is it?
Negotiable dollar deductibles below the property market.
Minimal use of aggregates (CA EQ)
Less use of policy sublimits
A long-term product
Annual Premiums based on annual sales
Selling price basis of valuation

8. Cargo STP Insurance Fragmented policy approach uses several policies
Conventional
Fragmented policy approach uses several policies
Policy does not provide for “each and every loss indemnity”
Cat exposure restricted to aggregate sub limits
Fewer marketing options as more capacity is required for the combined Property and Stock policy
PROPERTY/STOCK
(agg.)
SUPPLIERS
(agg.)
OCEAN
CARGO
(eel)
$1m
$1m
$1m
CARGO
DEDUCTIBLE
DEDUCTIBLE
DEDUCTIBLE
Conventional Chain

9. Cargo STP Insurance
Solution
Cradle-to-Grave coverage (including suppliers premises, inventory, transits, DCs/Warehousing and unnamed locations)
Lower deductibles, without higher retentions for Cat risks
Less restrictions on Cat exposures through aggregated limits
Offers per Location/Occurrence limits of liability
A flexible Basis of Valuation clause including an element of BI
Increased marketing options in respect of real property
STOCK
(Including
DCs)
PROPERTY
(Including
Retail)
SUPPLIERS
DEDUCTIBLE
CARGO
CARGO
DEDUCTIBLE
DEDUCTIBLE
DEDUCTIBLE
Supply Chain – Seamless Coverage

10. STP – the clients Oil/Petrochemicals Agriculture Pharmaceuticals
Hi Tech
Bio Tech
Textiles
Foodstuffs
Natural resources e.g. mining
Distribution companies

11. The Markets / STP Market Facilities
The biggest source of STP capacity comes from the London market.
Fast turnaround for initial terms.
Typically $50,000,000 any one loss any one location.
Ability to structure excess limits when required.
Key Markets:
Ace Global Markets
Aegis
Allianz
Amlin
Ascot
Markel
O’Farrell
Pembroke
Starr Marine

12. Claims Service Integrated with the Placing and Servicing team.
Established record of solving high value and complex commodity losses.
Strong relationships with key Underwriters, Loss Adjusters and Lawyers.
Claims Advocacy Service

13. David Christopher
Crump Insurance Services
VP, Senior Property Broker