“Perfect Storm” Results in Most Challenging P&I Renewal

Press Release
Thursday, December 13, 2012

The upcoming Protection and Indemnity (P&I) renewal is poised to be the most challenging in a decade as a result of difficult economic conditions for ship operators, poor underwriting results and some of the largest claims in history, according to Willis Global Marine, a division of Willis Group Holdings plc (WSH:NYSE), the global insurance broker, in its annual P&I Market Review.


The P&I market results last year (2011/12) showed a 13% increase in incurred claims, a 5.9% underwriting loss and only a 2.7% investment return. Total market free reserves increased marginally (4%) but tonnage increased by 9% over the same period. The market is therefore larger, but proportionately slightly weaker than the previous reporting period.


Against this backdrop, 2011/12 has the dubious honour of registering the highest level of net paid and net incurred claims ever reported by the P&I market (2% and 8% higher than the previous record level in 2009/10).


Added to that, 10 out of the 13 P&I clubs reported underwriting losses. On a financial year basis in 2011/12, the largest individual P&I club combined ratio was 120%, the lowest was 85%. Neither of these extremes of underwriting deficit or surplus (respectively) should be sustainable in a mutual environment.


“With pressure on all sides, the 2013 renewal will likely present some of the hardest fought negotiations since the turn of the century,” explained Ben Abraham, Global P&I Practice Leader in Willis Marine and author of the P&I Market Review.


“It is self-evident that ship operators are facing one of the most challenging economic periods in a generation. It is similarly obvious that the P&I market is not balancing its underwriting results. Added to this, the reinsurance market has been presented with the largest and third largest claims in the history of the International Group (IG). The final contributing factor to this ‘confluence of events’ is a fragile and lacklustre investment market that is likely to allow only meagre returns.”


He continued: “In such a challenging renewal environment, the choice of specialist broker is critical to ensure that best value is achieved from this unique market.”

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

People & Company News

ClassNK Releases EEDI Verification Software – Free

Japanese classification society ClassNK says it offers its Minimum Propulsion Power Calculation Software and ISO-based Progressive Speed Trial Analysis Software

China Shipyard Delivers Handymax Size Bulk Carrier

COSCO Corporation (Singapore) inform that its Dalian Shipyard in China has delivered a bulk carrier of 57000 dwt, named "GUOTOU 108", to its Asian buyer. The Handymax bulker measures 189.

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Finance

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received

Topaz secures another West Africa contract

Topaz Energy and Marine, a leading offshore support vessel company with primary operations in the Middle East and Caspian, today announced a new contract win for

Casualties

Tug on the Rocks, Lake Pontchartrain, Three Rescued

US Coast Guard 8th District says that it has rescued 3 crewmembers aboard the uninspected tugboat 'UTV Todd Michael' after it grounded on the rocks near the Lakefront Airport on Lake Pontchartrain.

Fire Aboard US Warship Transiting Atlantic Ocean

U.S. Fleet Forces Command inform that a  fire broke out aboard 'USS Hue City' (CG 66) as the ship was transiting the Atlantic.
 Hue City had departed Mayport, Fla.

GofM Drill Rig Damaged, Coast Guard Monitoring

The Coast Guard is overseeing response efforts, as the offshore drilling rig ENSCO 8506 began taking sea-water into a ballast tank after being hit by a large wave

News

Hong Kong Tin Hau Festival

The Tin Hau Festival at Tai Miu Wan will be celebrated this year on 22 April 2014. Coxswains, owners and operators of local vessels are advised that arrangements

Fire Aboard US Warship Transiting Atlantic Ocean

U.S. Fleet Forces Command inform that a  fire broke out aboard 'USS Hue City' (CG 66) as the ship was transiting the Atlantic.
 Hue City had departed Mayport, Fla.

Three NOAA scientists honored by White House

The White House yesterday awarded three NOAA scientists with Presidential Early Career Awards for Scientists and Engineers. The award is the highest honor given

Insurance

TT Club Signs Partnership in The Philippines

Specialist transport insurance provider, TT Club has appointed a network partner in The Philippines.  Del Rosario Pandiphil Inc. becomes the seventh such partner

Coast Guard Seeks Comment on New Safety Training

U.S. Coast Guard advance notice of proposed rulemaking seeks comments on maritime safety training requirements   The U.S. Coast Guard Monday, April 14, 2014,

Padbury Mining Secures $6.5 Bln Port Funding

Australia's Padbury Mining Ltd said it had secured almost $6.5 billion in funding to build a new deepwater port and railway at Oakajee in Western Australia, potentially

P&I Clubs

Ultra Deepwater Rig Towed 11,500 Miles

Fairmount Marine towed Sevan Louisiana to Curaçao Tug Fairmount Sherpa towed rig Sevan Louisiana safely from Singapore to Curaçao. During the 11,500 miles voyage via Cape of Good Hope,

Fit for Sea Medical Program Tests 300,000th Applicant

The UK P&I Club informs that its Pre-Employment Medical Examination Programme, claimed to be the world’s leading scheme for assessing the fitness of prospective seafarers,

TT Club Pinpoints Risks for Logistics Operators

The overwhelming majority of insurance claims analysed by TT Club have showed that costly damages and loss, as well as serious bodily injury can be prevented or

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.3393 sec (3 req/sec)