Korea P&I, changing into a global club swiftly
Shipping journalists invited Korea P&I
Club (Chairman Jong-Seug Park) on May 4, 2018 to be explained of the
achievements of the Club last year and the current issues this year.The partnership with Standard Club, a huge attraction last
year, improved the chances to insure large vessels in earnest as 29 vessels including Hyundai
Merchant Marine¡¯s LNG carriers, Polaris¡¯s tankers, Korea Shipping Corporation¡¯s capesize bulkers,
and Pan Ocean's heavy cargo carriers enter. In addition, KP&I made good achievements by signing
coinsurance agreements with 8Hull&Machinery insurers in Vietnam thanks to the
trade volume between Korea andVietnam being Increased significantly and political relationship
getting closer. KP&I is to focus on expanding in the Vietnamese market from this year.Meanwhile, KP&I has been accepting the Chinese
members' vessels with flag of convenience in third powers such as Hong Kong, Panama etc. but now Chinese
vessels can be entered.
Thanks to the support by Lianyungang Ferry, KP&I
became the first Non-IG Club to be approvedby the Chinese MSA to accept Chinese vessels as designated
insurer. In last April, the Club organized a joint marketing seminar in Athens, Greece
with Korean maritime economic organizations such as Korean Re, Korean Register of Shipping and DSME followed
by a series of meetings with local insurance brokers and Shipping companies with a
plan to enter the European market. KP&I is in the middle of globalization As they insure 85 vessels
(11% of total premiums) from the fleet overseas.
KP&I decided to expand entries of large vessels as a
key business this year. In this regard the Club signed a MOU with Korea Shipowners¡¯ Association and Marine
Financial Center to cooperate for the development of domestic shipping-related industry. KP&I
is also to cooperate with Korea Ocean Business Corporation to be established in July, and the Government
to take efforts in accepting government-supported vessels such as national essential ships,
strategic cargo carriers, and eco-friendly vessels under support. According to KP&I such system as national essential
ships system are for contingencies and it is much easier and more beneficial to manage insurance
under contingencies when entered into KP&I against IG Clubs.
Since the end of last year, there have been opinions
that efforts should be taken to improve the Unfair trade, illegal trade, etc. in domestic P&I
insurance market. Fair Trade Commission is still Investigating Japan P&I whether it was involved in
In addition, there is criticism that Hull&Machinery
insurers are getting more interests in P&I insurance to work with Overseas P&I insurers giving
hands to the leaking of national wealth. Under the circumstances, Korea Shipowners¡¯ Association decided
to seek research and service about[The development plan for P&I insurance industry of
Korea] with KP&I and Korea Shipping Association, jointly.
KP&I hopes that Korean shipowners demonstrate the
win-win spirit so that shipping-related industrysuch as KP&I, KR, etc can be developed together in
consideration that KP&I can write any type of vessels now at a competitive rate.