Transport mutual renegotiates reinsurance for static risks
The TT Club has reinstated full terrorism cover for property and equipment risks, two months after the transport mutual was forced to terminate terrorism cover for static risks.
At the time, the club said it was responding to the tough reinsurance environment following 11 September.
However, this week, chief executive Paul Neagle announced the club had negotiated new terrorism reinsurance for static risks, making it one of the few providers offering full terrorism cover for land-based transport risks.
Neagle said the club would reinstate cover with little or no premium rise.
He said the club had also joined Pool Re and would rate all UK risks according to Pool Re's conditions.
He said non-UK risks had been reinsured in the commercial market.
"There are some exclusions still in force in the Middle East, but for most other countries there are no real restrictions," said Neagle.
He said the move would give the TT Club an edge over its competitors.
"The availability of terrorism cover for all our classes of business is an important differentiating factor between the products provided by the club and those offered by our competitors."
The TT Club covers 70% of the world's container fleet, 2,000 ports and 4,000 transport and logistics operations.
The reinstatement of cover was a turnaround from the club's situation late last year, when it introduced a 30-day cessation clause on all new policies and a 20% across-the-board rise in renewal premiums.
It had recorded underwriting losses of $50m (£35.4m) from 1997 to 2000.
At the time, chairman David Thompson said: "The outlook for 2002 is very uncertain and it's clear that the club can't rely upon investment returns to support underwriting results for the foreseeable future."