2023 Chairman's Statement

Dear members

I am delighted to be writing my first statement as Chairman of ITIC, having succeeded Lars Safverstrom in March 2023. Lars was Chairman of ITIC since 2019 and a director since 2009, guiding ITIC through the challenges of Brexit, the Covid-19 pandemic and ITIC’s response to the war in Ukraine. On behalf of the board and all members, I thank Lars for his stewardship and contribution to ITIC’s growth and success.

I can report that in its 31st financial year, ITIC has produced a strong surplus. ITIC, combined with its mutual reinsurer TIMIA, returned a US$8.1m surplus for the year to 31st May 2023 (“2022/23”) after paying US$14.5m in continuity credit. This follows the US$14.2m credit paid in the previous year. 

The continuity credit is paid to renewing members and effectively reduces the cost of your insurance. Your board, at its meeting in March 2023, reviewed the level of ITIC’s free reserves and decided that, notwithstanding the high inflationary environment and continued volatility in the investment markets, as ITIC’s free reserves are strong, and well above the amount required for ITIC’s solvency purposes, they would pay a continuity credit for the 29th consecutive year for all renewals in the 2023/24 year.  

  • For one year policies, a credit of 15% of the premium. 
  • For two year policies, a credit of 25% for year one and at least 15% for year two.  
  • Those in the second year of a policy, begun in 2022/23, will receive a credit of 25%, which was substantially more than the original 15% promised by the board at its meeting in March 2022.

Your board considers the payment of continuity credits to be an extremely important benefit of being covered by a mutual insurer. Since the continuity credit payments began 28 years ago, I am pleased to report that more than US$190.0m has been returned to you, the members. 

The risk for all claims up to US$1.0m continues to be retained by ITIC, as well as an additional two retentions in excess of the primary US$1.0m level and one retention excess of US$2.0m. We are comfortable that the reinsurance in place reduces the risks of large claims to an acceptable level at a reasonable cost. 

ITIC’s total annual premium increased in 2022/23 by 4.4% and so ITIC has now had four good years of growth.  In past years, total premium has remained static largely because of consolidation in the transport services market, so it is pleasing to have again returned this year to strong growth.  ITIC continues to retain approximately 96% of its members at renewal each year; a good retention rate and an indication of how highly our members view the quality of service and cover given. 

It is important for ITIC to maintain its level of free reserves both for solvency reasons and to allow the levels of continuity credit to be paid to the membership.  I am pleased to advise that the combined free reserves of ITIC and TIMIA have increased from US$221.9m as at 31st May 2022 to US$230.0m as at 31st May 2023.

In common with past years, the board decided to close the preceding policy year, meaning that no additional premium can be requested from members for the 2021/22 policy year or any earlier year.  The only full year that remains open is 2022/23. ITIC has never requested additional premium for any policy year.

The insurance, claims, contractual advice and practical help that we can provide through our staff in London to members, advisers, brokers and introducers around the world, continues to set us apart. In 2023 ITIC will, for the first time, have a presence outside of London with the establishment of a subsidiary company in Cyprus, International Transport Intermediaries Insurance Company (Europe) Ltd (“ITIICE”) through which to underwrite ITIC’s EEA business. This new structure will mean that ITIC will become less reliant on third party fronting arrangements whilst members and brokers will continue to enjoy the same high level of service to which you have become accustomed. 

Most of you will know ITIC as an insurer of risks in the marine sector, however for a number of years ITIC has also provided cover to aviation professionals. This is a market in which your board sees strong growth potential and to this end you can expect to see more activity from the managers as, with the support of the board, they look to grow this sector of ITIC’s business. ITIC provides cover for companies whose services include areas such as aircraft lease and operational management, continuous airworthiness management, charter broking, design and surveying/inspection services.

ITIC reports fully to Solvency II standards and is regulated by the Prudential Regulation Authority.  Details of ITIC’s solvency position can be found in the Solvency and Financial Condition Report, which is available on the ITIC website: https://www.itic-insure.com/about-itic/solvency-ii-reporting/

ITIC is committed to consistently providing competitively priced professional indemnity insurance (and related insurance cover) with valuable, high quality loss prevention advice to businesses servicing the marine, aviation, and general transport industry through a mutual insurance company supported by at least “A-” rated security from its external reinsurers.  The focus will firmly continue to be on maintaining strong reserves and the provision of quality service and sound risk management advice by a highly competent staff.

The accounts and financial highlights for the 2022/23 year will be available on the website (www.itic-insure.com) before the AGM on 21st September 2023. 

Report and Financial Statements

The audited Report and Financial Statements for the year ended 31st May, 2023 for both ITIC and TIM (Transport Intermediaries Mutual) are below:

ITIC Directors' Report and Financial Statements for year ended 31st May 2023
TIMIA Directors' Report and Financial Statements for year ended 31st May 2023

The Directors and Managers of ITIC and TIM are mindful of the difficulties you may have in appreciating the financial strength of ITIC and its quota share reinsurer TIMA, merely by reading their respective accounts in isolation. Accordingly, in order to assist you in reaching a practical understanding of the combined financial strength of ITIC and TIMA, we have prepared unaudited Financial Highlights of the combined Accounts of the two Clubs, which can also be found here - Combined Highlights of ITIC and TIM.

View Financial highlights

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