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North P&I Club to keep mutual, fixed premiums due to tough market
来源： 编辑：编辑部 发布：2018/11/28 09:42:20
THE North P&I Club has announced that for a third consecutive year the premium will not be increased for both protection and indemnity (P&I) cover and freight demurrage and defence (FD&D) cover come February when existing policies will be up for renewal.
The North's chairman said the decision was taken in light of "the prevailing economic difficulties facing many of our members. Shipowners around the world are already grappling with increasing regulatory costs, political uncertainty with concerns around the impact of Brexit and disruption to worldwide trade from international protectionism," said Pratap Shirke.
"During the first part of the year the Club has seen an increase in the number and cost of retained claims over US$1 million as well as an increase in pool claims," he noted.
"Along with the ongoing volatility in equity market returns and the continuing trend of premium erosion, our combined ratio for the full financial year is expected to be around 110 per cent, slightly reducing the Club's free reserves.
"Corrective action will be required in the near future to address this premium erosion and halt the decline in capital," said Mr Shirke.
CEO Paul Jennings revealed that all members' premiums and terms will be reviewed to "ensure that declining rates of premium are halted and equitably adjusted to properly reflect performance and exposure going forward."
Deductibles below $25,000 for owned P&I cover will be increased by at least $1,000 per deductible. For mutual and fixed premiums for North's FD&D cover there will be no change to deductibles.
The North's chairman said the decision was taken in light of "the prevailing economic difficulties facing many of our members. Shipowners around the world are already grappling with increasing regulatory costs, political uncertainty with concerns around the impact of Brexit and disruption to worldwide trade from international protectionism," said Pratap Shirke.
"During the first part of the year the Club has seen an increase in the number and cost of retained claims over US$1 million as well as an increase in pool claims," he noted.
"Along with the ongoing volatility in equity market returns and the continuing trend of premium erosion, our combined ratio for the full financial year is expected to be around 110 per cent, slightly reducing the Club's free reserves.
"Corrective action will be required in the near future to address this premium erosion and halt the decline in capital," said Mr Shirke.
CEO Paul Jennings revealed that all members' premiums and terms will be reviewed to "ensure that declining rates of premium are halted and equitably adjusted to properly reflect performance and exposure going forward."
Deductibles below $25,000 for owned P&I cover will be increased by at least $1,000 per deductible. For mutual and fixed premiums for North's FD&D cover there will be no change to deductibles.