HULL & MACHINERY, AND MORE

Hull & Machinery, and more

Developing our activities into mainstream H&M was always an option because of the inherent connections with our niche covers, and became a possibility since Nordic’s involvement as Alandia’s correspondent and the development of our Primary Loss of Earnings (PLoE).

Since Jan Limnell joined the Nordic Marine team in May 2022, though, it became a real project.

Jan’s knowhow and reputation, combined with our team’s experience, were key factors of the successful gathering of backing capacity that on 01/03/2023 our partners and shareholders, the West of England, announced they were fronting.

West Hull, fronted by West, is fully managed by Nordic Marine through our dedicated underwriting team made of Jan Limnell, Constantinos Elmaoglou, Yiannis Minovioudis and Mathias Lindvist.
The claims side is handled by Nordic’s claims team, Magnus Hammarqvist and Konstantinos Korais.

The facility provides comprehensive hull and machinery (H&M) and Loss of Hire (LoH) insurance by an experienced and recognised underwriting and claims handling team, backed by a panel of A-Rated reinsurers.

The underwriting philosophy that we apply to mainstream H&M, conventional LoH and IV is the same philosophy we apply to our new core product Primary Loss of Earnings (PLOE): each enquiry is reviewed by no less than two separate underwriters.

PLOE is a new cover, developed and only proposed by Nordic Marine: more details below. A proposal for PLOE will be provided to all risks selected for H&M, conventional LoH and IV.

This underwriting approach has been our trademark since day one and the foundation of what has been a positive technical underwriting performance… since day one.

All fleets that will be provided with terms for mainstream H&M will, first and foremost, fit the risk profile for our Primary Loss of Earnings, so the risk selection will be the same as the one we successfully applied to our core niche covers and will privilege quality risk profiles and long-term relationships.

The Main Points:

H&M - Conventional Loss of Hire (LoH)

IN RISK PROFILES :

  • Follow lines on well-known / reputable risk leaders
  • Policy wording basis Nordic Marine Insurance Plan, Institute Time Clauses Hulls and American Hull Clauses
  • Focus on standard Bluewater tonnage and primarily tankers, bulkers and other cargo vessels
  • Other conditions and vessel types are considered on a case-by-case basis for good risks
  • Minimum deductible, leader’s deductibles

IN NUMBERS :

Hull & Machinery and Hull Interests (H&M)

  • $10M capacity
  • H&M line up to 15%, ideally with a matching line on the IV / FI

Conventional Loss of Hire (LoH)

  • Lines up to 50% (but always maximum line up to leader’s share)
  • Indemnity days usually 60 or 90 days per event and in the aggregate
  • Additional days can be considered on a case-by-case basis
  • Standard minimum deductible of 14 days.

Primary Loss of Earnings (PLoE):

The New Norm

PLoE is the latest cover launched by Nordic Marine.

Developed thanks to feedback received from brokers and clients, and launched after satisfactory trials and testing that allowed us to gather sufficient data for general launching.

PLoE is the lens through which Hull risks will be reviewed and we firmly believe it will become the new norm for the more sophisticated, top H&M performers.

It is structured in the same way as conventional Loss of Hire (LoH) rather than our « named peril » based Delay cover and designed to provide, for suitable risk profiles, a Loss of Hire deductible buy down option for 7 days of the conventional LoH 14-days’ deductible.

It is exclusively provided by Nordic Marine and consistent with our historical commitment to deliver niche insurance solutions that connect, complete and enhance the mainstream covers.

Dan Lennhammer and Claudio Blancardi, not involved in the day to day of the H&M covers, will assist the Hull team with Primary Loss of Earnings, effectively enabling them to propose to brokers a « mainstream-plus » cover in a new, pragmatic and innovative package.

Indeed, it will give the opportunity to brokers to propose to their owner clients an opportunity to be ahead of the curve, a very useful position in a volatile environment.

More information in « Primary layer loss of earnings for owners »…