- The UK P&I Club has set a general increase of 12.5% on all mutual premium rates for the 2022 renewal.
- Members with adverse records should anticipate higher increases.
- Double-digit rises are far above a normal annual raise, typically a 5% increase in years gone by.
Shipowners have received confirmation that next year will be an expensive one in terms of cover for their vessels reported by Splash.
A large call
Members with adverse records should anticipate higher increases, the club added.
Earlier this month the West of England P&I Club became the first club to indicate its 2022 plans, calling for a 15% hike in rates.
Double-digit rises are far above a normal annual raise, typically a 5% increase would be considered a large call-in year gone by.
A supplementary appeal
“Record pool costs and Covid-19 related liabilities mean that a corrective action is now necessary,” the West stated in a note to clients earlier this month.
The London Club issued a supplementary appeal for members covering the previous three years, which has also spooked owners. The new rises are a 25% increase over the original budgets, with the struggling insurance company citing “acute weakness” in rating levels in the P&I sector, as well as the high number of claims this year and a spike in the cost of claims containing Covid-19, as reasons for the increases.
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Source: Splash
