American Club Sets 17.5 Percent General Increase in P&I Rates

Thursday, November 20, 2003
The American P&I Club has announced a general increase of 17.5% in total premium for its P&I business for the 2004/2005 policy year following a meeting of the directors in Copenhagen. Any increase in the cost of the International Group’s reinsurance programme, which has not yet been determined, will also apply. As usual, and in line with other mutual clubs, individual members’ premium ratings will be adjusted in accordance with their loss records. Another decision by the directors means that the advance call will equate to 100% of estimated total premium. This compares with a 2003 policy year advance call of 83% of estimated total premium. The directors state: “Moving to an advance call requirement representing 100% of estimated total premium will improve the club’s cashflow in 2004, bringing it into line with practice elsewhere in the IG while creating administrative efficiencies.” The club’s general increase for its freight, demurrage and defence (FD&D) business is 10% for 2004. The release call has been fixed at 25% of the relevant advance call for both classes of business. As to development of open policy years, the directors noted that 2000 and 2001 were developing in line with expectations; but 2002 had shown some deterioration from earlier projections. The current year was satisfactory, showing a respectable surplus to date. However, the very recent implementation of the club’s new IT system nevertheless means that the managers intend to complete a further updated analysis of open-year results in the next few weeks and will advise members. In any event, and while acknowledging significant revenue development in recent months, the directors concluded that, as many other IG clubs had observed, “there remained a need to achieve levels of premium rating sufficient to match increasing exposures in a continuing hostile liability climate.” The board was firmly of the view that although good progress had been made in enhancing the club’s financial strength, and while recent gains in the equity markets had been encouraging, reliance on prospective investment performance was no substitute for solid underwriting results as the best way forward to continuing financial stability. Joe Hughes, chairman and chief executive of Shipowners Claims Bureau Inc., the managers, said: “The directors realise that increases in premium, though always unwelcome, are necessary to maintain the club’s financial strength and future progress.”
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Propulsion

Voith to Exhibit High Efficiency and DP Systems at SMM

At this year’s SMM in Hamburg, Voith will showcase propulsion systems and vessel concepts focusing on high efficiency and dynamic positioning even under challenging conditions.

Combat Cold Corrossion via Condition Monitoring

Parker Kittiwake explains why frequent condition monitoring is the most effective measure in combating the recent cold corrosion phenomenon The recent trend in

Unified Emissions Monitoring: Turbulo Bluemon

Last month at Posidonia SKF Blohm and Voss Industries launched the Turbulo BlueMon emission monitoring system, a system that is designed to record all emissions on board ships via a single system.

Finance

Petroecuador Tenders to Buy 3.84m bbls of Naphtha

State-run oil company Petroecuador has launched tenders to buy a total volume of 3.84 million barrels of naphtha for delivery in the coming month at Esmeraldas,

Company Fined for Oil Spill Near Anacortes

Ecology issues $112,500 penalty for sunken vessel.   American Gold Seafoods faces a $112,500 penalty for an oil spill caused by the accidental sinking of its vessel,

London Shipping Professionals Weigh in for SPNL Report

The Shipping Professional Network London (SPNL) has  released their full Future London report, an initiative that gathered the views and opinions of London’s young

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1615 sec (6 req/sec)