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 (Sompo).
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 (IHS) 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 released as proposed measures and are available above.
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 conclusion of a JCC cyber clause (2019-004) to ensure risks are fully understood. Clause 437 has now also been released to provide named perils coverage, and to insure compliance with Lloyd's and PRA requirements.
Bulk Oil Clauses: the working party, Chaired by Richard Golder (Hiscox) has now received approval from the JCC for release of the new bulk oil clauses including clauses for storage. The new clauses are now available on the Lloyd's Wordings Repository (LWR) and the JCC webpage.