Ian Nicholas. P&I Correspondent. Nimes España

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2 Ian Nicholas P&I Correspondent Nimes España

3 CHALLENGES FOR P&I CorrespondentS

4 PRESENTATION SUMMARY How has the role of a P&I Correspondent changed over the last years? What are the challenges faced by a Correspondent? How can we tackle these challenges? What is RaetsMarine expecting from its Correspondents?

5 The role of a P&I Correspondent until recent years

6 The ROLe OF A P&I CORRESPONDENT UNTIL RECENT YEARS The main local assistance for P&I Insurers. The eyes and ears of the P&I Insurer on the spot. Usually the first to be advised of the incident. He then reported the matter to the P&I Insurer, sometimes even after the matter had been attended to.

7 The ROLe OF A P&I CORRESPONDENT UNTIL RECENT YEARS Directly engaged surveyors, lawyers and other service providers. Co-ordinated the claim and was the link between the local developments and the P&I Insurer. The main player in the film until the end of the file.

8 The ROLe OF A P&I CORRESPONDENT UNTIL RECENT YEARS He also attended in routine assignments: Arranging pre-loading surveys Arranging condition surveys Arranging crew medical examinations

9 The ROLe OF A P&I CORRESPONDENT UNTIL RECENT YEARS The area where he was listed was his kingdom. Any matter arising in relation with his P&I Insurer was automatically his claim.

10 Changes over the last years

11 Changes over the last years Means of communication (pictures and general information are on the screen of a claims handler within minutes). Easier access to information (contractors, specialised information, AIS).

12 Changes over the last years Economic crisis and cost awareness. Alternative solutions to the traditional way of handling a claim through a P&I Correspondent.

13 What has this meant to a Correspondent?

14 What has this meant to a Correspondent? Most of the appointments now come directly from the P&I Insurer. Appointment is not an automatic consequence of a claim having arisen. Before appointing a Correspondent, the Insurer will consider whether the use of the Correspondent will contribute towards a better handling of the claim or not.

15 What has this meant to a Correspondent? It is not uncommon for surveyors, lawyers or other service providers to be directly appointed by the P&I Insurer. Some P&I Insurers make it clear that they are handling the claim and the Correspondent is only assisting to the extent that this is specifically requested. The role of the Correspondent may fade away as the claim develops.

16 What has this meant to a Correspondent? Routine assignments no longer handled through the P&I Insurer. Some P&I Insurers have broadened their network of Correspondents, sometimes listing several Correspondents in the same port. Insurers may also ask a Correspondent to attend to matters in other ports or areas.

17 What has this meant to a Correspondent? A sort of competition has been introduced between Correspondents. The Correspondent can no longer take it for granted that if a new claim arises in his area he will be intervening. P&I Insurers (and other sorts of clients) are also looking with more detail into the cost which the involvement of a P&I Correspondent implies.

18 What has this meant to a Correspondent? At the same time, a number of claims are no longer handled through P&I Insurers. Other service providers are stepping into the sort of services traditionally handled by Correspondents, in some cases with the assistance of local agents. Owners, Carriers and Charterers have developed in-house claims departments.

19 What has this meant to a Correspondent? These departments directly appoint surveyors and lawyers, usually with a high pressure on cost control. Even in cases falling over the deductible the claim may be handled internally by the insured and the P&I Insurer is then asked to pay the invoices.

20 What has this meant to a Correspondent? A more recent development is for full claims departments to be moved to a location where claims handling costs are lower and from where claims from all over the world are handled (call-centre).

21 Challenges for a P&I Correspondent

22 Challenges for a P&I CorrespondenT Less claims being handled through the Correspondent. More pressure on costs. But the Correspondent is still expected to be immediately available upon demand to handle the big claim when it arises, having all the resources, contacts and contingency plans to be able to provide the required assistance.

23 Challenges for a P&I CorrespondenT At the same time, there is no guarantee that the big claim will arise or that it will be assigned to the Correspondent. Will things revert back to how they were once the economic crisis is over?

24 The difficult questions

25 The difficult questions Are my services as a Correspondent still necessary on a day to day basis? And if they are, are my services worth the cost they imply in the overall handling of the claim? We have to make our services indispensable for the P&I Insurers and we have to make them worth the cost.

26 The difficult questions I.e., we have to be able to add value to handling of the claim.

27 Where is the added value?

28 Where is the added value? Being on the spot? Having the contact details for local surveyors, lawyers and other services providers? Maintaining good relationships with the local port community and the authorities which may assist in resolving a problem? P&I Insurers may see this as the minimum requirement for being a Correspondent, not necessarily as an added value.

29 Where is the added value? Taking a positive attitude and consider the claim as if it was the Correspondent s own problem. Providing knowledge and advice based on previous experiences. When appointing surveyors, lawyers or third parties, be honest and ensure that the most suitable professional is chosen - this may be tricky when the Correspondent is also providing legal or surveying services.

30 Where is the added value? We should know our own limits and let the P&I Insurer know when additional resources should be sought. Providing sound and realistic advice on the chances of defending or pursuing a claim. Sometimes surveyors can be too helpful, possibly underestimating the effect of negative findings or the strength of allegations by other parties.

31 Where is the added value? Likewise, lawyers can be too optimistic as to the strength of a claim or a defence. The Correspondent may be able to assist in counter-balancing this. The Correspondent should assist in finding the possible weak points in the Principal s position and ensure that the P&I Insurer gets a realistic view of the case, even if this is not what it would like to hear.

32 Where is the added value? Providing feed-back on how to improve future handling of claims The use of a Correspondent at an early stage may assist in a more cost-effective resolution of the case. Also in cases in which it is perceived that the use of a Correspondent is not essential.

33 Where is the added value? Assisting with cost control (obviously including the control of the Correspondents own cost). Jointly assess with the claims handling team which decisions had a good result and what could have been done better.

34 Where is the added value? Evaluate, at the end of the file, the contribution which the Correspondent has made towards the satisfactory resolution of the matter. And maybe this should also be reflected in the final invoice?

35 What is RaetsMarine s approach?

36 What is RaetsMarine s approach? RaetsMarine have made it clear that they are handling the claim. They use their network of service providers to obtain the specific assistance which they may require, but fully retaining control of handling of the claim. Making a special emphasis on the knowledge and experience which each of us can provide within this network.

37 What is RaetsMarine s approach? They are looking into the added value delivered by each of us and how this has contributed towards achieving a good result in the final outcome of a claim. This was summarized in the more cure more pay philosophy.

38 Our experience within the network

39 Our experience within the network Initial surprise about the more cure more pay approach. Knowledge and experience is not only flowing in one direction. We have learned from a different way of approaching claims. We have been able to exchange experiences and impressions with other members of the network.

40 Our experience within the network This has also resulted in receiving assignments from other members of the network in other matters or disputes which fall out of the scope of activity of RaetsMarine. We have also obtained assistance from other members of the network or we have been able to refer matters to said members, knowing that a good service was guaranteed.

41 THANK YOU FOR YOUR ATTENTION