The following issues were discussed at the JCC meeting held on 3
September:
Global Cargo Watch List Changes:
Location Descriptions – None.
Additions/Removals – None.
Risk Level Changes: - None.
Other Risk Score Changes:
Algeria - Severe 3.5 from Severe 3.3: security forces’
deployment east of Algiers indicates anticipated increase
in AQIM attacks during Ramadan.
Burkina Faso - High 2.5 from High 2.4: increased civil unrest
risk and consequent disruption to cargo following President
Compaore’s move to amend the constitution to give him a third
term.
Burundi - High 3.0 from High 2.9: increased terrorism risk as a
result of internal dissent within the FNL opposition party.
Colombia - Severe 3.3 from Severe 3.4: normalisation of relations
with Venezuela reduces risk of
border skirmishes and disruption to cargo. Israel/PA - Severe 3.7 from
Severe 3.6: Israeli announced exercise deployment to Golan increases
Israel’s military
readiness.
Yemen - Severe 4.0 from Severe 3.9: Increased risk of violent
unrest around government assets as a result of likely increase in
government air strikes against southern secessionists.
Indonesia
– EA was monitoring reports of an increased incidence of
low-level piracy type attacks off Indonesia. EA would continue
to monitor and would report back to JCC if these became significant from
an insurance perspective.
Mexico
– EA was monitoring the activities of various cartels around
Mexico, these would be
reported back to JCC if the activity continued to escalate.
Iraq
– EA provided an overview following the withdrawal of
US combat troops. The
view was that Iraqi security forces were capable of dealing with
internal security threats, although questions remained as to their
abilities to handle an external threat. There had been an increase in
the activities of some criminal gangs, mainly centred in the
Central/Northern Provinces, but these could spread to the Southern
States where there was significant re-building and infrastructure work
underway. There were no particular threats to the port areas at this
time.
In the longer term, the majority of Iraqis seemed to have a desire
for a single, unified country, under a strong central Government.
It was recognised that there would need to be a degree of work on
reconciliation before this could be achieved.
UK
Export Control Order 2008 / Sanctions Limitation
Following discussion at the last meeting with regard to sanctions
limitation, the clause produced by the Joint Hull Committee had been
issued by the JCC under JC2010/014. (See clauses and circulars
sections below)
The committee discussed the general principle of sanctions’
wordings. It was recognised that there were difficulties regarding their
use in certain jurisdictions but, from an insurer’s perspective,
it was important to outline the implications for insureds where insurers
were subject to regulatory restrictions. Certainly within the
Lloyd’s environment, compliance officers were looking at sanctions
limitations and this was likely to become more important from a
compliance perspective going forward.
With regard to the Export Control Order, the revocation of licence
wording had been issued under JC2010/015. (See clauses and circulars
sections below)
Electronic Support for Endorsements (London Market Pilot)
It was noted that Business Scenario Testing (BST), involving
practitioners, had started on 23 August 2010. In an attempt to assess
practitioner readiness a questionnaire had been issued through the Joint
Cargo (JC2010/016), Liability and Hull Committees seeking information on
practitioner readiness. Responses received to date had been largely
positive. One concern related to the amount of BST undertaken to date,
and whether this level of testing would be sufficient to give
practitioners confidence that the system would be robust and fit for
purpose in time for the stated “go live” date of 1st October
2010.
The next meeting of the Practitioner Group would be taking place on 7
September 2010. At this meeting the group would be carrying out a
preliminary assessment of the level of BST and trying to identify any
particular issues or problems that practitioners had experienced.
It was suggested that a follow up to the previous survey should be
issued by the JCC to encourage users to submit their particular issues
to the LMA centrally. The practitioner representatives on EMG would need
comprehensive feedback from other market practitioners in order to
report back to EMG. It was agreed that a suitable circular to
this effect should be drafted and circulated.
The Chairman reiterated that the JCC, JHC and JLC had all agreed to
monitor the pilot but had made it clear they would not be prepared to
endorse the project unless practitioner concerns were adequately
addressed.
Extra Expenses Wordings
Following a discussion on this subject at a previous meeting, a
number of example wordings had been submitted by committee members. This
issue had been raised due to concerns over the additional coverage which
might be provided under certain extra expense clauses. It was suggested
that an educational session on this topic should be arranged and Mr
Roderick agreed that Clyde & Co would be prepared to do this. It was
agreed that this session should be held as part of the Cargo Forum
meeting taking place on 24th November in the Lloyd’s Old
Library.
A sub-group representing the committee would assist Clyde & Co in
the preparation of this presentation.
XCS Large Cargo Losses 2009/2010
The first draft of the 2009/2010 Cargo Large Loss list was reviewed
by the committee. This would be edited by the Secretary, in
consultation with XCS, prior to its release (expected release by end
September 2010).
Ancillary / Trade and Commodity Clauses
work on the revision of remaining clauses was ongoing. A recent
meeting of the Steering Group had shown that the project was largely
running to timetable, scheduled for completion at the end of 2010. The
Chairman of the Steering Group, would be invited along to the November
meeting of the committee to report on progress.
Cargo Forum Meeting 22 September 2010
It was agreed that no specific presentation should be arranged for
the Cargo Forum meeting to be held on 22 September. Instead, the
Forum would incorporate the usual update on JCC activity, along with an
overview of the IUMI 2010 Zurich conference.
Copper & Non Ferrous Metal Risks in Central/Southern Africa
It was noted that a presentation would be given by David Duffus, DPS
March, on the subject of Copper & Non Ferrous Metal Risks in
Central/Southern Africa. The presentation would take place at 10.00 am
on Friday 10 September in Lloyd’s Old Library. A circular
has been issued publicising the event (JC2010/017 – see
circulars/events sections below.
Interpol Fine Art/Jewellery Loss Database
Interpol were considering establishing a database of loss and stolen
fine art and jewellery. Mr Hopwood would monitor progress and report
back to the committee.
Date of Next Meeting
The next meeting was confirmed as taking place on Friday 1st October
2010.
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