08.03.01 - Hull war risks insurance is the latest e-commerce product from the Lloyd’s marketwhere three leading syndicates have just launched an online system to speed theprocess of buying cover in this highly-specialised class of marine insurance.

Lloyd’s syndicate 376 (Alleghany) is operating www.warsure.com after several months of trials. The syndicate is supported by two partners, Syndicate 623 (Beazley) and Syndicate 609 (M.E. Denby & Ors.), which share the risks. All three are specialists in this class of business. The website was constructed and designed by Wildnet New Media Group.

The main aim of this new electronic trading site is to enable the purchase of marine war cover more quickly than has ever been possible. Time is saved by the virtual elimination of paperwork. Buyers of war coverage can register with warsure.com over the Internet and obtain and bind quotes, view and make changes to the cover, and even notify claims.

James Skinner, the hull and war underwriter at Alleghany Underwriting, commented, “Given the speed at which conflicts around the world can escalate, warsure.com can react quickly to any situation. And the efficiency of the service means we are able to offer competitive rates. But the accent is on rapid service.”

Capacity via warsure.com is $100m, any one vessel and up to the hull value in respect of war P&I. Twelve months’ cover can be arranged for vessels trading worldwide, subject to the current exclusion list under the London market’s War Risks Trading Warranties. Vessels trading to excluded areas are liable to an additional premium at underwriters’ discretion.

Warsure.com utilises Verisign 128-bit secure server technology, meaning that any information submitted to the website is encrypted and unreadable to anyone as it travels over the Internet. The product has gone through a 10-month gestation period, including several months of trials.

James Skinner comments that refinements currently being researched include hyperlinks with news websites, so that users will be immediately alerted to breaking news which could affect war risks insurance. Furthermore, he does not rule out extension of the facility into other areas of war risks.

Welcoming the new initiative, Julian James, Director of Worldwide Markets at Lloyd’s said, “This latest new e-commerce product follows the many launched at Lloyd's in the year 2000, and again demonstrates the innovation and flexibility to be found in Lloyd’s syndicates. Two recent success have been TLO-Online and Oilsure (both are Wildnet sites).”