Marine mutual liability insurer North of England P&I Club is increasing premiums 7.5% for P&I cover and 2.5% for freight demurrage and defence (FD&D) cover while P&I deductibles will rise by US$250.
A statement says: “The increases – which are broadly in line with industry averages and the same as those set for 2006/7 – are deemed necessary to maintain the ‘A’ rated club’s financial position in a continuing adverse claims environment with an uncertain investment outlook. They will take effect at renewal on 20 February 2007.”
The club’s chairman, Bill Thomson of Scottish tanker owner Forth Tankers says: “North of England has consistently been one of the top-performing clubs and the increases announced for the forthcoming year should ensure this remains the case.”
“The club’s operating environment is inextricably linked to the increasingly difficult claims experience of the global shipping market, particularly the unpredictability of larger claims facing the International Group pool,” says Mr Thomson. “A combination of continually increasing claims costs and claims volatility, together with long-term uncertainty in investment returns, means further premium increases are essential if we are to continue our course towards technical underwriting balance.”
Deputy managing director Paul Jennings says there has been a large deterioration in International Group pool claims in 2006/7. He says: “A concern for all clubs is the increasing number and level of pool claims, which is a significant component of our future budgeting requirements. Claims reported to the pool in the first six months of 2006/7 reached a record level compared with half-year figures in 2005/6 and 2004/5.”
