Following changes in 2004 to both EU and UK competition law, the London War Risks Rating Committee was disbanded and the rating schedules abolished.  The War Risks Rating Schedules that were issued by the London War Risks Rating Committee detailed the Minimum War and Strikes rates applicable for sendings to or from particular named or surcharged areas. The surcharged areas were places or regions which the Committee considered most likely to be affected by War or Civil Disturbance, and thus represented a heightened risk of loss.

The disbanding of the Committee means that there are no longer standard published rates for sendings to or from heightened risk areas, and it is therefore necessary to negotiate the best possible rates for each affected voyage.  Whilst the Committee published rates it was always the case that War & Strikes rates for shipments to or from surcharged areas were individually negotiable with Underwriters and, in some cases, no additional premium was charged at all.

The rating schedules have been replaced with a Country Risk Evaluation Assessment Model (CREAM). Available online (http://exclusive-analysis.com), CREAM categorises countries into Low, Caution, Elevated, High and Severe. Within in each risk category is a number scale which identifies whether a country is high or low within each risk category. On a risk by risk basis, the Underwriters will establish which risk categories are subject to surcharge rates on application.

Our maps highlight those parts of the world which are identified by the Country Risk Evaluation Assessment Model but instead of showing a scheduled rate, we now offer some comments on the current market sentiment with regard to each high risk area. We maintain daily contact with Underwriters in different parts of the world in an effort to ensure that these comments reflect the general market conditions as accurately as possible.

Should you have any Cargo which is to be shipped to or from any of the countries or regions shown here, then please discuss the risk as soon as possible with your usual contact at FP Marine Risks. Whether you are an existing Open Cover Holder, or dealing with a single shipment, we shall be pleased to negotiate the best possible terms with Underwriters.

E-mail Alerts

Existing clients of FP Marine Risks receive e-mail alerts of amendments to the CREAM. If you would like to receive these alerts then please advise your usual contact or e-mail us on info@fp-marine.com

© 2006 FP Marine Risks Limited