WK WEBSTER GROUP GENERAL AVERAGE WK WEBSTER GROUP

WK WEBSTER GROUP GENERAL AVERAGE

WK WEBSTER GROUP GENERAL AVERAGE PRESENTATION TO BMUSF APRIL 21 2016 ANDREW JOANNOU CHAIRMAN W K WEBSTER & CO LTD 2

WK WEBSTER GROUP KEY ELEMENTS • Voluntary sacrifice • Extraordinary expenditure • Common safety • Common maritime adventure 3

WK WEBSTER GROUP ISSUES • Extension to concept • Adjuster neutrality • Last to know • Evidence 4

WK WEBSTER GROUP GREATER OR FEWER? • More trade = more vessels = more risk • Trade more important than maintenance • Competition = service = speed = higher risk 5

WK WEBSTER GROUP 6

WK WEBSTER GROUP 2010 - 2015 • Less trade = less vessels = fewer casualties • Long recession • Problems looming • Why? 7

WK WEBSTER GROUP FUTURE § Vessels laid up § Lack of maintenance § Market recovery – glut of tonnage / speed of reactivation § Breakdowns 8

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WK WEBSTER GROUP HIDDEN PROBLEM? § Yes § Piracy § Fire / undeclared cargoes 10

WK WEBSTER GROUP 11

WK WEBSTER GROUP FUTURE ISSUES § Poor tonnage § Inexperienced crew § Cost pressure § Gargantuan vessels § GA rather than maintenance § 2016 increase in casualties 12

WK WEBSTER GROUP ALTERNATIVES § Losses lie where they fall § Absorption clauses § Over-arching insurance § Limit casualties § Minimum values § Status Quo 13