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 August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Propulsion

Last Call to Register for SHIPPINGInsight

Maritime industry conference and exhibition opens next week in Stamford, Conn. There’s still time to register online for SHIPPINGInsight 2014, the North American

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

ClassNK Update Design Support Tool for EEDI Verification

Minimum propulsion power evaluation software extended to calculate added resistance in irregular waves Classification society ClassNK has released the latest

Finance

Barge Operator Fined for Releasing Dangerous Gas

The operator of a Portsmouth-based barge has today been made to pay almost £111,000 in fines and costs after pleading guilty to a breach of maritime legislation.

Charterers Remain Optimistic Despite Small Downturn

Overall confidence levels in the shipping industry fell slightly during the three months to August 2014, according to the latest Shipping Confidence Survey from

Insights: New York Canal Director Brian Stratton

Brian U. Stratton was appointed Director of the New York State Canal Corporation in April 2011, to oversee the operation and development of New York’s 524-mile Canal System,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1507 sec (7 req/sec)