The insurance work group consists of Paul Rollason (Qld), Matt Roberts (former ATHRA treasurer and currently organises insurance for CFCLA) and David Toyne (Risk Manager). Having Matt and David on board is a real asset.
Contact has been re-established with AON to progress the ATHRA insurance needs for members. The ultimate aim is to obtain great policy terms and reduced premiums. The way to do this is to get more of the T&H sector together and pool our needs so that we can take this to insurers and underwriters. The larger the pool – the greater bargaining power we have. Not only will this be for Public Liability Insurance (PLI) but also for other insurances such as Professional indemnityRolling stock insurance, Director’s Liability insurance, Building and contents insurance, Cyber insurance, Voluntary Worker’s insurance, Business Interruption insurance, travel insurance etc.
We have also created one Excel document to capture all the information required for each insurance category so that each member railway does not have to complete multiple forms and duplicating information multiple times. This document has been circulated and the due date for response is 30th August 2018. It is downloadable from the ATHRA website. It was distributed with the attached cover letter back in July – Insurance Cover Letter – Ver 4 – 29 July 2018
Once the information is collected, AON will go out to the market and get 5-6 different reputable underwriters and re-insurers to submit a quote to see who will offer us the best deals. Only ATHRA members will have access to this scheme. The more members involved the cheaper it becomes for everyone. This will be yet another huge benefit of being a member of ATHRA and could end up saving your railway thousands of dollars a year.
The Heritage Railway Association (HRA) in the UK has established a mutual scheme. This mutual is where the member railways get together and establish a pool of premiums and they essentially self insure when the pool is large enough thus saving huge amounts in premiums once the mutual is established and gets a pool of money together. The Work Group is liaising with the HRA to investigate whether it is possible ATHRA joins this scheme (which may also become a worldwide scheme for T&H railways) or whether we establish our own mutual. There are many facets to consider here including legal ramifications however we currently feel it is well worth us working with our UK colleagues in exploring this option.
Regardless which scheme is utilised, it is essential ATHRA members stick together as the larger the pool the more bargaining power we have and we can shop around to get the best deal. This scheme will come unstuck if members then try to use the reduced premium to shop around themselves. In the short term an insurer may provide a cheaper premium for the first year or so but it will then start to increase. Having this large pool of policies once again allows us to get the best price for members year after year. Remember a single policy for $20000 is far less attractive to an insurer than a pool of policies worth $5M. Also note, at the end of the day, different brokers use the same limited number of underwriters and re-insurers.
If you haven’t yet completed the spreadsheet with your organisations insurance requirements, please contact Paul Rollason at firstname.lastname@example.org