The event was Addressed by Mr. George Sp. Alexandratos- General Manager of Apollonia Lines S.A- Chairman of the BoD of the PMC and President of Hellenic Chamber of Shipping, Ms. Maria S. Prevezanou- Director of Evmar Marine Services Ltd.- Treasurer of the BoD of the PMC / Organiser of the Conference and Introduction by the Chairman: Mr. Lou Kollakis honorary chairman of Chartworld Shipping Corp.
The speakers discussed the 1st motion: “This House believes that the practice of some clubs in relentlessly accumulating premium revenue by way of general increases at each renewal, while simultaneously returning funds on earlier years, is a paradoxical and confusing approach both to the issue of club financing and to that of shipowner budgeting.”
For The Motion spoke Mr. Jerry Westmore Head of Underwriting European Syndicate Steamship Insurance Management Services Limited.
He pointed out that general increases have to be at a prudent level, Regulators can also set limitations on sharing funds looking at the combined ratio of the Club.
Against The Motion spoke Mr. Phillip Eccleston Head of Underwriting- Greece NorthStandard Limited and Mr. Francis Church Associate Director Underwriting Britannia Steam Ship Insurance Association Limited.
He marked that this issue is not black and white depending on reinsurance changes and claims. However, sustainable pricing safeguards shipowners’ interests.
The P&I relationships must be long term as claims are unpredictable. Francis Church told that the club’s have the ability to return funds because of their mutuality if the capital position allows.
It is very difficult to project how the year will fluctuate. The capital position of a Club is also affected by investment returns and the cost of claims. In conclusion, the audience agreed that no general increases must be charged when the funds are available.
The 2nd motion referred to the following topic: “This House believes that the Trump administration’s policy on sanctions may be less severe in relation to Russia but more severe in relation to Iran, Venezuela and China, potentially causing differences between the sanctions regimes in the US, UK, and the EU making it impossible for the Clubs to monitor compliance by their members.”
The discussion moderated by Mr. Dinos Caroussis Director Chios Navigation (Hellas) Ltd.
For The Motion argued Mr. Daniel A. Tadros COO American Steamship Owners Mutual Protection & Indemnity Association, Inc. and Mr. Sean Geraghty Regional Director of Greece Thomas Miller P&I Ltd (UK Club).
He noted that Trump is very unpredictable and he has shown a keen interest in the maritime sector. The cabinet also includes commercial minded people and takes very seriously sanctions and compliance.
Sean Geraghty told that: “US loves sanctions and there is a great imbalance in the volume and complexity between US and EU and UK sanctions.
Therefore, owners and operators are in a very difficult position in regards to the sanctions. Governments must align various policies otherwise it is impossible to monitor compliance”.
Against The Motion: Ms. Agapi Terzi Regional Claims Manager, Greece Shipowners and Mr. Harris Papaspyropoulos Head of Claims– Greece The Swedish Club.
Mrs Terzi underlined that: “Trump will follow a unilateral and muscular approach in regards to the sanctions. All Clubs have tracking systems and compliance screening tools to protect help the interests of their members”.
He marked that: “Russia cannot reach to a peace agreement with Ukraine in a short of time as Trump thought. Venezuela is also a complicated area for imposing sanctions as US takes cheap petroleum products and US companies are involved in the oil production activity.
China is also a very difficult case for imposing tariffs as US economy is heavily depended on Chinese consuming goods.
Shipowners rely a lot at the Club’s assistance regarding AI screening and tracking of sanctions.
George Gourdomichalis believes that: “Trump will also try to control Greenland and Panama Canal at any cost”.
The next motion was: “This House believes that Clubs place importance on S&P ratings and are pressured to diversify so as to strengthen capital returns and good risk management. Clubs that have diversified their line of business have advanced the mutual model and not threatened it by commercial insurance”.
The debate was Moderated by: Mrs Ismini Panagiotidi CEO and Founder Pavimar SA
For The Motion: Mr. Audun Pettersen Vice President Gard and Mr. Marius Vitas Senior Claims & Marketing Manager (Hellas) West of England Insurance Services SA.
Marius Vitas believes that: “mutual Clubs must diversify to H&M, Loss of Hire and other insurance products as it is not cost effective to stay in one activity.
However, diversification has to be adopted without risking the members’ capital.
It must be a profitable activity. Club’s have the appropriate experience and expertise to offer to the members a variety of insurance and financial services.
He said that: “diversification can give you a scale and the ability to handle different complicated cases. The driving factor behind diversification is the cost of running a Club, accumulation of other lines of business and a contribution between the different activities of the Club”.
And the last motion: “This House believes that, in light of the growing volatility and complexity of the global risk environment, traditional methods of differentiating P&I exposures between vessel types, areas of operation and characteristics of trade are increasingly inadequate and will require considerable modification for the future, including those relating to the IG Pool.”
The debate was moderated by: Mr. George D. Gourdomichalis Director Phoenix Shipping & Trading SA
For The Motion: Mr. James Bean Chief Executive The London P&I Club.
Against The Motion: Mr. Leandros Kotsakis Vice President, Claims Skuld Hellas
The speakers and the audience agreed that: “In a complex and volatile shipping world that we are now experiencing with more types of ships like VLACs, OSVs etc and various fuels Clubs have to be well informed and ready for the future.
We live challenging times and Clubs have to differentiate and adapt to the future requirements”.
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