Marine insurer North P&I Club has set a “necessary” general increase of 7.5% on protection and indemnity as well as freight, demurrage, and defence premiums for the 2020/21 policy year.
In its announcement, the Club said the price hike is needed in order to maintain financial strength and stability amid rising International Group Pool claims and premium erosion. Meanwhile, rates will also be adjusted further for members with adverse loss records or enhanced exposures.
“The marine insurance landscape has been challenging, and during this time we have persisted with our strategy of preserving a balance between reliable financial management and our desire for controlled growth,” noted North chairman Pratap Shirke.
“However, the Club has not been immune to the impact of the number and value of claims reported to the International Group Pool in the first six months of the year, which has ultimately had an adverse effect on our technical underwriting results.”
North said all members’ rates will be adjusted to incorporate any changes in the costing and structure of the International Group Excess Loss Reinsurance programme.
Shirke added: “The directors remain focused on the need to support our membership and have decided on a renewal strategy that, in line with sound corporate governance principles, provides a transparent general rating increase.
“This is the most appropriate and equitable mechanism to notify members of the Club’s overall budgetary requirements for the next policy year.”