Steamship Mutual Set 10% Premium Increase for 2014

MarineLink.com
Friday, October 25, 2013
Gary Rynsard, Steamship Mutual CEO

At their board meeting on October 22, the directors of the Steamship Mutual reviewed the club’s open policy years, as well as claims in earlier years, and considered the premium ratings required for the 2014 policy year.

On the basis of owned claims reported to date, the overall value of claims for the current policy year is expected to be high, continuing the trend of recent years. It was noted that the total value of claims in the layer up to $250,000 is marginally below last year, with 15% fewer claims being offset by a 10% increase in the average cost of claims, the value of claims estimated in excess of $250,000, net of applicable reinsurance, is 20% higher than last year reflecting a significant increase in the number of higher value claims.

With six claims notified to date, the incurred experience on the International Group Pool suggests that full year Pool claims costs will also reflect a higher trend in recent years.

A claims development review carried out by the club continued to demonstrate the normal pattern of releases from prior year claim reserves. The full year forecast is for prior year movements as a whole to be in line with, or exceed expectations set by the board.

In the third quarter markets adjusted to the prospect of withdrawal of monetary support in the US. Global government bond yields continued to rise and investment values recovered from the sell-off in the previous quarter. The trust transferred its holdings in U.S. Treasuries and mortgage backed bonds to funds of short term Treasury bills, thereby significantly reducing interest rate risk in the portfolio. Combined with the trust, the association has achieved a modest positive return for the year to date.

The directors considered the outlook for the association’s underwriting performance, and the adverse impact upon that performance of claims over the last three policy years. Whilst acknowledging that the economic downturn continues to affect some members, they concluded that premium levels should nevertheless be increased by 10% across all entries and for all categories of business, with minimum deductibles for all P&I entries of $7,500 for crew claims, and $15,000 for all claims other than crew and cargo, the latter remaining at $5,000.

Records will be assessed in the usual way, with particular attention to adverse claims performance and increasing exposure. Any adjustments in the costs of the international group reinsurance program, whether up or down, will be passed on to members.

The directors decided that the release calls on the 2011/12 and 2012/13 years will be maintained at 5% and 10% respectively and that the release calls for the current year and 2014/15 will be set at 25%.

Gary Rynsard, Steamship Mutual CEO, commented, “Given the continuing difficulties in the freight market the board has only after most careful deliberation concluded that the increase in overall cost of claims necessitates an increase in premiums.  The board also believes that an increase in members’ risk retention by way of a small increase in deductibles would be of benefit both to the club and ultimately the members themselves.”

steamshipmutual.com
 

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

KEP Marine Unveils KMGBL

KEP Marine – the manufacturer of type approved displays, computers and peripherals, announced  the release of the affordable, high-quality KMGBL Glass Bridge Light Displays.

New Load Measurement Solution for Port of Dampier

Strainstall designs and delivers a load measurement solution for the world’s largest floating wharf at Port of Dampier.   Strainstall, part of James Fisher and Sons plc,

Rolls-Royce Power Package for USS Zumwalt

Rolls-Royce announced delivery of the twin fixed pitch propellers to Bath Iron Works for installation on the U.S. Navy’s most modern surface combatant, the future USS Zumwalt,

Finance

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

China's Navy Drills in South China Sea

China said it conducted air and sea drills in the South China Sea on Tuesday as it stakes an increasingly assertive claim to virtually the whole sea despite rival claims by neighbours.

News

Idreco Delivers Dredger for Hydro-Dam in Congo

Idreco (International Dredger Constructions) of the Netherlands informs it has designed, built and installed its second dredger, an ISD 600 with a digging depth of 30 meters,

BAE Systems Awards Software Contract to SENER

The Spanish company SENER, Ingeniería y Sistemas S.A has closed a contract with U.K.-based BAE Systems PLC for the integration between FORAN CAD/CAM System and

Hawboldt Secures Cape Sharp Tidal Winch Deal

A third Nova Scotian company has secured a multimillion dollar contract with the Cape Sharp Tidal project, which has potential to be the first grid-connected tidal array in the world.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction 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: 0.2321 sec (4 req/sec)