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P&Imutual entries
- 7, 5% increase general increase for the policy year 2024/2025
- No changes in P&I deductibles would be applied.
FD&Dentries
- 7, 5% increase general increase for the policy year 2024/2025
- Deductibles apply on costs as follows: USD 12,000 and 25% in respect of costs in excess of USD 250,000
The Board noted that the stable position is in line with the Club’s expectations,reflecting a cautious approach in their underwriting strategy as well as inevitable phase out of older tonnage.
The Club’s mutual P&I membership renewed on 20 February 2023 with a retention rate of more than 96 % against a General Increase set by the Board at 10%. The mutual portfolio has remained stable during 2023 with entered gross tonnes for Owner’s mutual P&I currently standing at 58 million. The Club is grateful for the continued trustplaced with the Club.
Concerning the FD&D the Club insures around 1450vessels (65 million GT) for these risks and the ambition is to continue thegrowth and to market the FD&D product to members in need of advice andlegal protection.
The Club renewal circular sets out the main highlights from the Clubs operating environment which were considered when deciding the general increase requirements:
- Frequency in P&I claims overall has seen a slight decline in the current year , however, premium is still insufficient to cover the expected costs of future claims, particularly driven by the continuous impact of inflation in the last three-year period.
- The current claims inflation environment demands proactive and responsible measures to adjust premium rating levels. Accordingly, the Board has resolved to implement a General Increase of 7.5% for the 2024/25 Policy Year. This step is vital to ensure the Club continues to maintain a balanced portfolio and remains resilient, especially considering the current underwriting deficit and the broader geopolitical uncertainties.
- To increase deductibles as follows: Standard minimum increase of USD 1,000 for deductibles below: Cargo USD 15,000; Crew USD 10,000; 3rd Party USD 25,000; Other USD 10,000
- Any supplementary call for this year will initially be decided upon in 2024. The current estimated supplementary call for 2024/2025 is 0%
- The release call for 2024/2025 is presently set at 15%. Members should be aware that, even if a release all has been paid, the Association retains the right to make overspill calls as per the P&I Rules (Rule 24)
- The anticipated combined ratio, absent adjustments in premium to cater for inflation, is expected to be above 100% and impair the overall results and the last year’s run off trend has also been negative, which further needs to be taken into consideration for the forthcoming year. With the above in mind, the Board of Directors has decided on a 7,5% General Increase for the policy year 2024/2025 also for FD&D.
- The estimated release call for 2024/2025 for FD&D is 5%.
