Page 15: of Maritime Reporter Magazine (September 1998)

debis-Registered Trademarks of Daimler-Benz InterServices (debis) AG, Stuttgart, Federal Republic of Germany 0 Mercedes-Benz-Registered Trademarks of Mercedes-Benz AG, Stuttgart, Federal Republic of Germany MREN-98

Financial Services, Inc.

A subsidiary of

Mercedes-Ben/.

Credit Corporation d and the impact of "ticket to requirements — where the :ode provides the current g edge. lose look at the main cate- shows:

Cargo: Cargo insurance is nost international of the le insurances. Insurance anies throughout the world ier "their" cargo as a domes- tsurance to be placed locally, le same token, they will view :rs" cargo as capturable busi-

Cargo insurance, therefore, e most competitive. Despite current problems seen in a ber of Asian economies, there ) fundamental case against the ;er-term increase in world e nor is there any dispute that overwhelming majority of ;e volumes will continue to be zed by sea. Therefore, unlike haps elements of H&M or P&I arances, Drewry's report con- des this is not a "zero sum ne" and insurance underwriters i intermediaries will attempt to ;ain a larger percentage of an panding business activity, rgo owners will hope this com- titive approach will keep premi- tis low.

Hull and Machinery: The erriding Hull and Machinery sue of the moment is the confin- ing, and from the insurance idustry standpoint, apparently ilf-defeating reduction in the pre- lium rates beyond what would be warranted by past experience. )rewry determines that the opera- ive ethos at the moment appears o be "market share." The current ilaims situation is very favorable md underwriters everywhere appear willing to downplay large ilaims of several years ago in the hope of consolidating their existing book of business. Inevitably, this implies a short term approach and so relies a lot on hope. The worry is that it may prove to be a mis- guided hope. Shipowners will be happy with developments that maintain the favorable status quo. • Protection and Indemnity:

Two current developments will shape the manner in which P&I

Clubs conduct their business in the future. They are: the investi- gation by the European

Commission into alleged anti-com- petitive practices by the

International Group of Clubs; and the increased competition faced by the International Group from "out-

September, 1998 , Find out how to rule the seas with debis.

I Send for more information today. side" P&I insurers. The irony is that these two developments are almost opposites in their appear- ance. The first could reduce the number of clubs and by implica- tion, reduce the element of compe- tition. According to Drewry's report, a major restructuring of

P&I insurers looks to be in prospect in the near term future.

There will be more internal compe- tition within the group. The old concept of a "supper club" may well resurface. Some clubs will merge or otherwise informally cooperate.

Less viable clubs could disappear with their place being taken by the fixed premium market. How all this will impact on ship owners' premiums may take time to assess but, it appears likely that owners will have greater choice. • Marine Liabilities: The marine liability market is still con- fm you're looking for a financial partner who knows the sea, it's time you found out more about debis. With an entire team of specialists dedicated to the marine industry, we understand the suhtleties of providing custom financing for commercial vessels like no other lender.

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