Transforming Tomorrow:
Navigating Risk for the New Generation Shipowner
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New Generation Shipowners are being faced with a broad range of challenges. New corporate strategies and processes are required to deal with an industry that is being reshaped through market consolidation and shifts in international trade patterns. The current boom in shipping places pressure on already existing shortages of competent crew, increasing the need for an even greater focus on loss prevention and training. Add to this situation environmental challenges as well as energy shortages and ever more sophisticated national and regional governmental regulatory bodies. |
Our goal is to help the New Generation Shipowner navigate the risks arising out of this range of challenges.
Last year we launched the concept of the New Generation P&I Club – serving the needs of the New Generation Shipowner. Let’s look at this idea for a moment.
In earlier times, when evaluating risk, the future was only a mirror of the past. It was like looking in a rearview mirror. At that time, the idea of risk was based on a simple analysis of the past and how it could help us to determine the future.
Today, Skuld’s approach to managing risk goes much further. It balances decisions based on a qualified and sophisticated analysis of numbers – determined by the pattern of the past – with decisions based on a more subjective experienced-based knowledge about what lies beyond those statistics. In doing so, we help our members and clients to actively manage risk. This capacity to manage risk allows them to make bolder decisions and forward-looking choices. In this way, we provide one of the key elements of the energy that will drive the shipping industry forward.
ACCURATE, BOLD, CARING AND DEDICATED
Because we are committed to setting globally recognised standards with the needs of future generations in mind, our position in the marine insurance industry brings unique responsibilities. We aim to provide the leadership that will transform tomorrow's marine insurance industry. We have a clear vision of the future, underpinned by a consistent set of values.
Three of the Skuld values – ACCURATE, CARING and DEDICATED – form our core and provide continuity and stability. This core has a foundation in our unique blend of practical experience and new thinking with a strong base in more than a century of tradition. A fourth value – BOLD – urges continual change, new direction, constant improvement and the need at times to think outside the box. This is illustrated in our vision of being the New Generation P&I Club.
AROUND THE CLOCK AND ACROSS THE GLOBE
This year’s Annual Review takes a closer look at what this means for our members and clients day-to-day. In three case studies that you can viewed in the next section of the Review, we take a fictionalised look at three different incidents, involving dry cargo, stowaways and an oil spill. Running through these descriptions, you will observe some of the new ways we are handling underwriting, claims and day-to-day service.
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In Underwriting, we make use of sophisticated, tailor-made insurance IT systems and risk assessment tools that are at the forefront of our business. Our stringent selection process protects existing members at the same time as it makes membership attractive. We assess exact risk and set a correct price based on extensive experience and gain additional expertise through pre-entry surveys that balance both hard and soft indicators. |
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In Claims, our commercial approach focuses on handling cases internally in the club in order to provide the swiftest, most professional service. Our claims handlers are empowered to make decisions and take fast action which allows short turn-around times. And by reducing the number of cases per claims handler in syndicates that are close to our members, we provide what we believe to be the most personalised service in the business. |
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In Service, we are proactive and reflective, and also deal with issues that are outside the normal framework of our business. In this way we are helping to set globally recognised standards in order to meet New Generation needs. In addition, we promote active initiatives aimed at loss prevention, working to stop claims before they happen.
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This approach is a sound one. And it is yielding results. As you will see in the financial section of this year’s Annual Review, Skuld achieved organic growth, as well as new members and operators in all markets in 2007. In addition to delivering a surplus for last year, our free reserves have now passed the USD 200 million level.
A REFLECTIVE APPROACH
Since our last report, we commissioned Det Norske Veritas (DNV) to run a review of possible ways Skuld might reduce its environmental footprint. This has provided some guidance on steps we in Skuld can take in areas such as travel, recycling and energy management. One of the initiatives we are taking now is to publish this Annual Review on the Skuld website www.skuld.com instead of in paper copy. We will still be publishing our accounts in paper format this year, but provide only a web version starting next year.
And you will be seeing more of us. We have now launched a “New Generation” graphic profile to emphasise how we live our values in Skuld. Our vision is all about helping our members better navigate risk and, in so doing, supporting then in making informed choices.
