POOL
Pool claims for the 2010 policy year are at a similar level to those of 2009 (see Table 5), and it is encouraging that the Pool has not returned to the claims levels reached on the 2006 and 2007 policy years. Nonetheless, the Club
has purchased additional reinsurance protection for Pool claims for both the 2009 and 2010 policy years which will provide a cap on the Club’s exposure to any deterioration should there be any late development on these years.
Table 5: Net notified Pool claims for policy years 2001–2010 100
80 90
70
10 20 30 40 50 60
0 0 RETAINED CLAIMS
The decline in the volume of world trade in 2009 and 2010 has had a beneficial impact on the number of claims reported. An example of this can be found in the drop in the frequency of claims in more recent policy years. The number of claims reported in the 2009 policy year was 25 per cent lower than the claims reported for 2007. In addition to the impact of the downturn in the world economy, advances in technology and improvement in shipboard practices have also contributed to the improved claims position. However, the rise in the average value of claims reported last year has continued unabated.
In 2000, the average claim cost was $17,806. By 2010, this figure had reached $29,069. Looking at particular claim types, the average cost of injury claims has risen from $6,996 in 2000 to $40,771 in 2010. In 2000, collision claims cost on average $41,066. By 2010 that figure was $287,914. Whilst the latter category of claim is far more prone to volatility, the evidence clearly suggests that the cost of dealing with marine accidents is increasing. An understanding of these claims trends has enabled the Club to improve its underwriting results and to tailor its own reinsurance programme.
11 4 8 12 16 Quarter 20 24 28 32 2007 2005 2010 2009 2008 2006 2004
2002 2003
2001
Notified Pool claims ($m)
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16