16th December 2021
- A +12.5% general increase.
- A +15% general increase.
The recent Board meeting has concluded by setting a +12.5% general increase to be applied onexpiring P&I premiums whilst a +15% general increase on expiring FDD premiums at 20thFebruary 2022. In addition, rates will be adjusted to reflect any changes in the cost of theInternational Group reinsurance programme, whether up or down. Members with adverse recordswill in addition have rates and terms increased to reflect as appropriate record and/or riskexposure.
In commenting and elaborating upon the background to the decisions made by the Board the clubinforms,
- The Club had a P&I combined ratio well above 100% in 2020, and with a claims level in2021 beyond what was expected an even higher combined ratio is anticipated.Approaching the end of the policy year, it is becoming clear that 2021 deficits in the P&Imarket are likely to be the worst since early 1990’s. Whilst exposures in relation toenvironmental, crew and third parties have continued to rise, the premium level has clearlyfallen behind. The Club has seen a notable increase in claims frequency in respect oflarge claims. In addition, Covid-19 related claims have impacted the Club substantially.
- In order to bring premiums to a sustainable level, price correction by means of a generalincrease is therefore needed.
- The new call will be adjusted by any changes in the International Group’s reinsurancecost. The call will also reflect the true exposure of the Club’s retention, as well asestimated contributions to pool claims, together with an assessment of the Member’srecords
Commenting on FDD entries,
- the Club’s main priority is to maintain high-quality service and a sustainable business overtime. Although it can be concluded that the Club’s FD&D business is in reasonably goodshape, the rise of the combined ratio for the last years is of concern. The FD&D result isunder pressure due to higher legal expenses, more claims reflecting the state of themarket and Covid-19 related issues.
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P.L. FERRARI & CO S.r.l.