DGS Reports Significant P&I Growth

MaritimeProfessional.com
Thursday, March 27, 2014
David Skinner, BE&O P&I Group Managing Director

Increase take-up following 2014 P&I renewals as ship owners look to cut operating costs and control insurance spend

DGS Marine, a global P&I (protection and indemnity) management provider, and exclusive manager for the British European and Overseas (BE&O) P&I facility, announced 19% premium growth following the completion of P&I renewals on February 20, 2014. This marks a significant growth in the fixed premium P&I market as ship owners and operators look to reduce their operational costs, the company said.

BE&O has seen a significant global increase in its business, including a 22% premium growth in the Middle East and a 35% increase in the Far East, especially in China, Indonesia, Malaysia and Vietnam. BE&O P&I also recorded solid 16% growth in North Africa, Russian and European markets. According to DGS Marine, this is due to the year-on-year rate rises from the International Group of P&I Clubs, combined with the challenges of current shipping market conditions, which is placing significant pressure on the balance sheets of shipping companies. As a result, an increasing number are turning to the fixed premium P&I market to give them greater certainty and control over their insurance costs.

David Skinner, BE&O P&I Group Managing Director, said: “Ship owners want to reduce their operating costs and take more control of how much they spend on their insurance cover. The continued profitable growth of BE&O P&I is a demonstration of the success of our long-term diversification strategy, which includes both geographical and product-portfolio expansion. We are committed to offering innovative marine insurance products that meet the needs of our Assureds. The fixed premium market continues to grow rapidly as owners recognize the downsides of mutuality. Smaller owners need to de-risk their operations as much as possible and fixed premium P&I facilitates this by providing them with real assurance and transparency over what they will be paying throughout the course of the cover.”

Fixed premium P&I provides ship owners with an insurance premium figure at the outset when they purchase the policy. This represents the full and final insurance cost for the length of the policy with no deviation. When it comes to the renewal process, the key determining factor is an assessment of the owner’s individual claims record, unlike the International Group system where rate increases are spread uniformly, which can significantly impact the profitability of smaller ship owners and operators.

DGS Marine believes that the key component for success for fixed premium P&I providers is the ability to provide smaller owners with a level of service that ensures quality, as well as transparency. David Skinner continued, “There is considerable divergence in the quality of the offering in the fixed premium market. P&I providers at the top end of the fixed premium market will always try and assist their Assureds, even when it comes to posting security for a ‘gray’ claim, whereas at the bottom end of the market, a certain number of P&I fixed premium providers or quasi-consortiums will wash their hands of the matter and leave the Owners on their own, or try to avoid the claim. By contrast, at BE&O we have always maintained a complete focus on quality and working in partnership with our Assureds to help them overcome their challenges, no matter how big or small the issues are."

BE&O P&I recorded 19% premium income growth on the P&I business during the 2013/14 P&I policy year, which was above the company's strategic growth plan, while at the same time following its strict disciplined underwriting philosophy that has been the key success factor for the facility for many years.

David Skinner added, "BE&O is becoming a sector-leader in terms of operating performance and we are dedicated to maintaining this position as we grow. In addition to unmatched service, we want to continue to offer our Assureds first-class security."

BE&O P&I Assureds are in a unique position in that they have already received PDF copies of policy documentation, giving them contract certainty on the first day of the new policy term.

dgsmarine.com
 


People & Company News

MN100: Guido Perla & Associates, Inc.

The Company: With offices in the US, Brazil, Chile, China and Germany, GPA developed into an independent, full-service naval architecture and marine engineering

Grand Bahama Shipyard Expands Sales Team

Grand Bahama Shipyard Limited (GBSL) has added three regional sales directors to its Marketing and Sales Division, with posts in the Americas, Europe and Asia/Middle East.

MN100: Kohler Marine

The Company: Kohler Marine generators are produced in the United States and distributed globally. Kohler Marine sales as well as aftermarket sales and service activities are globally organized.

News

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, announced that it has taken delivery of the ECO VLCC the Gener8 Macedon on August 30,

Grand Bahama Shipyard Expands Sales Team

Grand Bahama Shipyard Limited (GBSL) has added three regional sales directors to its Marketing and Sales Division, with posts in the Americas, Europe and Asia/Middle East.

NYC Ferry Strikes a Group of Kayakers

A New York Waterways ferry struck a group of kayakers on the Hudson River Tuesday afternoon, according to the U.S. Coast Guard.   Five of the 11 kayakers were

Insurance

MN100: MOPS Marine License Insurance

The Company: Since 1935, MOPS Marine License Insurance has defended the USCG licenses of mariners operating in every maritime sector in the United States. Its network of over 80 maritime law firms,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Port Authority Ship Repair Shipbuilding / Vessel Construction Sonar Winch
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: 0.1245 sec (8 req/sec)