The Bermuda-based UK P&I Club is setting up a new London-based mutual association, the United Kingdom Steam Ship Assurance Association (Europe), which will be underwriting P&I risks from 20 February.
The UK Club says the move allows “certain UK P&I Club Members to meet their local European regulatory requirements”.
The United Kingdom Steam Ship Assurance Association (Europe) Limited will operate as a subsidiary of. UK (Europe) will allow the UK Club to continue to insure Members whose ships fly the flags of certain states, such as Spain and Italy, where local insurance regulations require the insurer to possess an EEA regulatory "passport".
The UK Club says that it created the subsidiary by reinstating the underwriting licence of the Sunderland P&I Club which it took over on 16 years ago. The UK Financial Services Authority has approved the new arrangement as providing the necessary rights to trade into relevant European countries in the 2007 policy year.
Charles Fenton, Chief Operating Officer of Thomas Miller P&I Ltd, said: “All assureds will become full Members of the main UK P&I Club in Bermuda, regardless of whether they are routed via UK (Europe) or directly to Bermuda. The only material difference will be whether their policy is issued by Europe or Bermuda.