About the Joint Cargo Committee
Representing the interests of those writing marine cargo and related risks within the London market, this committee comprises underwriting representatives from both the Lloyd’s and IUA company markets. The committee is also supported by experts from the Legal, Claims and UK Cargo market.
The Chairman is Paul Ashworth (Axis) and the deputy is Richard Costain (Liberty Syndicates).
Role of Committee
The Committee provides a representative forum for appropriate discussion of current issues and challenges facing the marine cargo market.
Such requirements would include:
- promoting the principles of best practice in the cargo market
- Suggesting alternatives to industry practice and proposing suitable solutions
- representing the interests of the cargo insurance market to governmental and other regulatory bodies and to the Corporation of Lloyd’s
- providing a forum for education and development of technical knowledge of all in the cargo insurance market
- promoting the London Market as the global centre of excellence for cargo insurance
- providing support and guidance to other Committees, principally the LMA Marine Committee
- developing new wordings to address evolving challenges facing the cargo market
- ensuring all current market wordings are updated in accordance with legislative changes.
Piracy: the Committee retain the services of International Handling Services (HIS) to provide them with detailed briefings of the changing security threats around the world, which are regularly updated and available on the above tab.
Misappropriation: the recent experience of theft by misappropriation has led to a greater understanding of the developing operating methods and increased exposures of goods in store. Misappropriation Exclusion and Misappropriation Inclusion Clauses, including definitions of the perils faced, have been prepared as proposed measures and are available above.
Frozen Products Clauses: following the review of other Institute Cargo and Ancillary clauses, the Working Party has now finalised these clauses, including new all risks extension clauses.
Basis of Valuation: the increasing disparity between production and sales costs, where goods can be replaced has been recognised by the Committee, with an appropriate clause now finalised.
Cyber: the perceived view of the Prudential Regulation Authority (PRA) of the lack of understanding of cyber risks has led to the formation of a working party, Chaired by Nick Derrick (Travellers), to ensure risks are fully understood.
Bulk Oil Clauses: with the use of the current bulk oil clauses seemingly in decline, a working party has been established, Chaired by Richard Golder (Hiscox), and it has been decided three new clauses should be prepared; the widest of which being all risk with guaranteed outturn. A further clause to address storage exposures is also planned.