Asian shipowners must break the grip of Lloyd's in the marine insurance market if they are to get terms and conditions which meet the needs of maritime operators in the region, an industry leader said on Wednesday.
"In the past there was no regional competition and Lloyd's was God Almighty and dictated all the terms," George Chao, chairman of the Asian Shipowners Forum (ASF) insurance committee, told reporters.
He said the ASF had advanced plans for its own marine insurance vehicle that could be launched within year, although market conditions were too soft to contemplate that now. "Asians should not just rely on foreign facilities, we should have something of our own," he told reporters after a speech to shipowners and insurers in Singapore which sketched ASF plans for a regional insurance pool.
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"We are not talking about a P&I (protection and indemnity) club. Absolutely not. It could be a mutual insurer though, a captive, or an insurance facility," he told reporters.
"Our plans are in the final stage. We could be ready to go within a year once they are approved," Chao said.
Analysts estimate Asia's shipowners pay US$1.6 billion a year in marine insurance premiums, with the bulk going to insurers and reinsurers in London and Lloyd's.Lloyd's underwrites about 32 per cent of global marine hull insurance premiums.
Chao gave no estimate of the sums that could be redirected into a regional facility but said an early launch was unlikely.
"The market is too soft at the moment, but once rates turn we will be ready," he said.
Chao said Asian shipowners were dissatisfied with "support and consultation they have received from the Western-based insurance underwriters".