TT CLUB SWITCHES TO FIXED PREMIUM PRICING

TT CLUB SWITCHES TO FIXED PREMIUM PRICING

   TT Club, the insurance mutual specializing in the container shipping industry, said it is plans to change its pricing to a fixed premium system.

   Fixed premium pricing would replace the protection and indemnity mutuals’ traditional system of potential future “supplementary calls” for contributions from club members.

   Under the proposed new arrangement, all new business and renewal premiums written by the club will be on a fixed premium basis. All unexpired policies will be automatically converted to the same basis.

   The TT Club said the changes will be made in January, subject to approval by policyholder members TT Bermuda and TT Eurasia, in early November. If approved, the TT Club will then apply for regulatory approval of the changes in the United Kingdom and elsewhere.

   The new policy also entails the closure of the club’s three open policy years. This will completely remove the option of making a supplementary call in respect of policies issued prior to the implementation of the new arrangement.

   The board of the TT Club has also evaluated the benefits of mutual ownership of the club by the transport and logistics industry and reaffirmed its commitment to keeping the organization as a mutual, owned and controlled by its members.