Royal Caribbean is a global cruise company founded in 1968. It currently operates three cruise brands - Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises. Innovation is key to Royal Caribbean's success, as it has introduced many cruise industry firsts across its 25 ship fleet. The company focuses on strategies like strengthening its brands, investing in new ships, and deploying ships efficiently to optimize returns. It also prioritizes environmental sustainability through initiatives like its Save the Waves program. Royal Caribbean faces risks from factors like economic conditions, fuel prices, and cyber threats. It manages these risks through diversification, hedging, and investment in cybersecurity.

1. ROYAL CARIBBEAN
RISK SYSTEM
RISK MANAGEMENT E COPERTURE
ASSICURATIVE MARITTIME
2018/2019
CARLA CUOFANO
ELIO MERCOGLIANO
FLAVIO CRISCUOLO
KAROLINA HOTYUR
RENATO RUBINO

2. • Royal Caribbean was founded in 1968 and its corporate structure has evolved over the years and the current parent corporation,
Royal Caribbean Cruises Ltd., was incorporated on July 23, 1985.
ROYAL CARIBBEAN CRUISES LTD.
Royal
Caribbean
International
Celebrity
Cruises
Azamara Club
Cruises
TUI Cruises Pullmantur
SkySea
Cruises
Three global cruise brands Participations with other brands

3. Innovation is the key to the success of Royal Caribbean
Royal Caribbean ships are divided into classes: Sovereign,Vision, Radiance,Voyager, Freedom,
Oasis and Quantum.
The fleet includes 25 ships currently in service and has revolutionized the concept of cruising: it has "brought to the
sea" the first free-climbing wall, the first ice-skating rink, the first Royal Promenade, the first Surf Park.
 You can walk around Central Park on Allure of the Seas and admire the more than 12,000 live plants to feel
immersed in nature while the kids enjoy the Ocean Adventure Mini Club.
 With Navigator of the Seas, Majesty of the Seas and Enchantment of the Seas arrive in the Caribbean, the perfect
choice to escape from the rain and the winter cold.
 For a daring traveler who is not satisfied with the usual destinations you can easily reach Oceania with Explorer of
the Seas and Legend of the Seas.
 Voyager of the Seas also takes you to New Zealand, to discover unspoiled nature.
 If you dream of the Orient, with Mariner of the Seas you will reach Singapore, discovering its melting pot of
languages and cultures, passing through Malaysia and Thailand, or you can go to Japan and South Korea to discover
the oldest cultures in the world.

4. Operating Strategies
The principal operating strategies are to:
• protect the health, safety and security of our guests and employees and protect the environment in which our vessels
and organization operate;
• strengthen and support our human capital in order to better serve our global guest base and grow our business;
• further strengthen our consumer engagement in order to enhance our revenues;
• increase the awareness and market penetration of our brands globally;
• strategically invest in our fleet through the upgrade and maintenance of existing ships and the transfer of key
innovations across each brand, while prudently expanding our fleet with new state-of-the-art cruise ships;
• capitalize on the portability and flexibility of our ships by deploying them into those markets and itineraries that provide
opportunities to optimize returns, while continuing our focus on existing key markets;
• further enhance our technological capabilities to service customer preferences and expectations in an innovative
manner, while supporting our strategic focus on profitability;
• maintain strong relationships with travel agencies, which continue to be the principal industry distribution channel,
while enhancing our consumer outreach programs.

5. ROYAL CARIBBEAN ANDTHE ENVIRONMENT: One such initiative is the Save the
Waves® program, which was established in 1992 as a program that focused on
waste management and evolved into a company-wide philosophy of social
responsibility and sustainability practices that guide many facets of this business.
Additionally, all ships are continuously built and retrofitted to operate more
efficiently with less impact on the environment.
 SAVETHE WAVES: The four key principles: 1) ‘’ Reduce, reuse, recycle’’; 2) ‘’ Practice pollution
prevention’’; 3) ‘’ Go Above and Beyond Compliance (ABC)’’; ‘’ Continuous Improvement’’.
 SHIP DESIGN ANDTECHNOLOGY: The newest ships emit about 20 percent less carbon dioxide per
person per day than ships built only a few years ago.
 ENERGY EFFICIENCY: Royal Caribbean Cruises Ltd. takes pride in being a leader in the use of new
technologies to build and design ships that are more energy efficient (Air Lubrication, Hull
Configuration, LED Lights, High-Efficiency Appliances,WindowTinting, Heating,Ventilation and Air
Conditioning).
 EMISSIONS: 3 main ways to minimize air pollution: 1) Investing in emission abatement technologies;
2) Utilizing alternative fuels or renewable energy sources; 3) Reducing overall energy use.
Safety, environment and health policies

6.  WATER & WASTEWATER: Fresh water on a ship is a precious commodity that the company go to great
efforts in ensuring it’s used most efficiently (Onboard production; Bunkering; Capturing condensation;
AdvancedWastewater Purification; BallastWaterTreatment System; BilgeWaterTreatment System).
 WASTE MANAGEMENT: The company is managing efficiently waste with a keen eye on sustainability
(KeepingWaste Out of Landfills;SpecialWaste;Waste and Chemical Management).

7. Belt and Road Initiative
The Belt and Road Initiative (BRI), also known as the One Belt One Road (OBOR) is a development strategy adopted by the Chinese
government involving infrastructure development and investments in countries in Europe, Asia and Africa.
The Chinese industry sees the "Belt and Road" initiative as an element for long-term growth.With remarkable potential, it’s no surprise
that a vast number of foreign cruise companies are making moves into the Chinese market. Global market leaders Carnival Corporation
and Royal Caribbean Cruises stepped in during 2015. Ctrip and Royal Caribbean in turn set up a joint venture to launch the China-
focused SkySea Cruise Line to court local tourists.
The main risks
They are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel
prices.
• Interest rate risk: Exposure to market risk for changes in interest rates relates to long-term debt obligations including future interest
payments.They use interest rate swap agreements to modify exposure to interest, rate movements and to manage interest expense.
They use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage
this risk.
• Foreign Currency Exchange Rate Risk: The primary exposure to foreign currency exchange rate risk relates to ship construction
contracts denominated in Euros, foreign currency denominated debt and international business operations.They enter into foreign
currency forward contracts, collar options and cross-currency swap agreements to manage portions of the exposure to movements
in foreign currency exchange rates.
• Fuel Price Risk: Exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on ships. Fuel cost, as a
percentage of total revenues, was approximately 7.8% in 2017, 8.4% in 2016 and 9.6% in 2015.They use fuel swap agreements to
mitigate the financial impact of fluctuations in fuel prices.These fuel swap agreements are generally accounted for as cash flow
hedges.

8. Risk Factors
• Adverse worldwide economic or other conditions
• Fears of terrorist attacks, war, and other hostilities
• Fluctuations in foreign currency exchange rates, fuel prices and interest rates
• Unavailability of ports of call may adversely affect results of operations
• A failure to keep pace with developments in technology or technological obsolescence could impair
operations or competitive position
• They may be exposed to the threat of cyber attacks and/or data breaches, including the risks and
costs associated with protecting key operating systems and maintaining integrity and security of
business information, as well as personal data of guests, employees and business partners
• Litigation, enforcement actions, fines or penalties could adversely impact our financial condition or
results of operations and/or damage their reputation
• Environmental, labor, health and safety, financial responsibility and other maritime regulations could
affect operations and increase operating costs

9. Tipo di carico
1. Tankers
(navi cisterna)
Oil tankers
Chemical
tankers
2. Carriers
(porta rinfuse)
Dry bulk carriers
(rinfuse secche)
Gas carriers
(rinfuse liquide)
3. Container
ships
4. General cargo
ships
5. Ferries and
passenger ships
Characteristics of the ships of the shipping
companies of the club

10. Crude Oil Tanker: British Spirit
Official No: 703252
Built: 1983
Tonnage: 66,024 gross; 36,229 net;
127,778 dwt
Length: 260.99m
Breadth: 39.65m
Draft: 16.22m
Bulk Carrier: Iron Newcastle
Official No: 851596
Built: 1985
DWT: 148,140Mt
Length: 283.5m
Breath: 47.07m
Draft: 15.901m
General cargo ship: Iron Flinders
Official N0: 854086
Built: 1985
Gross tonnage: 13,380 DWT: 17,373Mt.
Length: 158.07m
Breath: 23.09m
Draft 10.102m
Container Capacity 928 teu
Container Ship: OOCL Longbeach
IMO No: 9243409
Built: 2003
GRT: 89,097
Length: 322.97m
Breath: 42.80m
Draft: 14.528m
Container Capacity: 8,063
teu

12. TheWest of England Ship Owners Mutual Insurance Association
• Risk Management System including the Own Risk and Solvency Assessment (ORSA)
“three lines of defence” approach to risk management:
1. Underwriting, Claims Handling and Finance
2. Actuarial, Risk Management and Compliance
3. Internal Audit
• Own Risk & Solvency Assessment (“ORSA”)
ORSA has become a critical internal tool for the Club and its Board to:
1) Assess the Club’s overall risk appetite against both capital strength and strategic objectives
2) Assess key decisions and allocate available capital accordingly
3) Ensure that the future capital position of the Club does not deteriorate beyond risk tolerance.
1830

13. Insurance coverage provided by the club

16. Risk Profile
Risk assessment and risk mitigation are at the core of P&I insurance business.
• Underwriting Risk :The principal risk for any insurer is that the frequency and value of insured losses exceed
expectations.
Diversification of underwriting across categories of vessels and regions is evidenced in the next two tables:
To assist the process of pricing and managing underwriting risk the Managers routinely perform a range of activities
including:
1) Documenting, monitoring and reporting on the Club’s strategy to manage risk;
2) Monitoring legal developments and amending the terms of entry when necessary;
3) Reviewing market and financial conditions of the industry; 3) Using underwriting tools to assist in the assessment and
pricing of risk (“pricing models”).

17. • Market risk:
1. Market or Investment Risk
2. The Club follows the Prudent Person Principle and has a conservative approach to its financial investments
controlled by its Policy and Investment Managers’ Guidelines Investment, including minimum credit ratings.The
policy and guidelines are regularly reviewed and approved by the Board of the Club.
• Counterparty risk: the risk that a counterparty will be unable to pay amounts in full when due.
The Association manages the counterparty risk by placing and regularly reviewing limits on its exposure to
counterparties within the overall risk tolerance framework.

18. • Operational Risk
Operational risks exist in the natural course of business activity like the risks of loss resulting from
inappropriate internal processes, people and systems, or from external events.
The Club has systems and processes in place to identify and monitor operational risk and to ensure exposure
is mitigated to an appropriately low level.
Cyber risk  Cyber risk is an area under increased scrutiny following a number of recent high-profile
attacks and data losses worldwide.
Potential damages for the Club resulting from a cyber-attack could be:
• Brand damage: declining business partner confidence and harm to reputation;
•Theft of funds, data and corporate intellectual property;
In order to mitigate this risk, the Club has invested in cyber security technologies and has developed
processes and practices designed to secure networks, computers, programs and data from an
unauthorised access.

19. • Reinsurance risk
Reinsurance reduces claims volatility. The Association is a member of the IG and benefits from its pooling
and reinsurance over for individual claims.
For PolicyYear 2018 this reinsurance covers claims from $10 million to $3.1 billion.This programme is the
Association’s primary reinsurance protection, above which the IG’s “overspill” arrangements apply.
• Reserving risk
This is the risk of claims in the balance sheet being understated, i.e. the risk that reserves are inadequate
due to the inherent uncertainty of knowing the ultimate cost, frequency and timing of liabilities incurred,
including the provision made for claims that have not so far been notified (incurred but not reported claims).
The Association has established clear and stringent estimating guidelines. In addition, the Association takes
advice from an independent actuary who uses established statistical techniques and applies knowledge,
experience and judgement to estimate the most likely overall outcome of liabilities. In this way appropriate
reserves are determined to meet claims as they fall due.

20. Financial
At 20 February 2018, the Club’s overall
financial position remains robust, and has
strengthened again with the Free Reserve
increasing to $308.5 million, its highest level
ever.
West of England maintains a financial strength
rating with Standard & Poor’s (S&P) with
“strong financial security characteristics”.
The position regarding call and release call
percentages is shown below. For Class 1, the call
is net, excluding any charge for International
Group reinsurance cost whichWest of England
recharges to its Members at cost.
PolicyYear Call and Release
Information

21. Club Analysis
• Loss Ratio 136.844/176.301= 0,78
(rapporto tra i sinistri rispetto ai
premi di competenza)
 The Best Estimate is calculated
gross, with the amounts recoverable
from reinsurance contracts projected
separately.
The Risk Margin is calculated by
determining the cost of providing an
amount of eligible own funds equal
to the Solvency Capital Requirement
necessary to support the insurance
obligations over the lifetime thereof.

22. • 211% (Solvency Ratio)
• 577.660/183.980=3,14
(Rapporto tra riserva
sinistri e requisito
patrimoniale di
solvibilità)

23. 1. Differenziale tra
stima iniziale e
stima corrente dei
sinistri della
generazione più
vecchia 
19.581-54.222=
-34.641
2. Differenziale tra
stima corrente dei
sinistri e i
risarcimenti della
generazione più
vecchia 
185.885-54.22=
131.663 (parte
riservata)