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

People & Company News

Q88 LLC Opens Office in London

Q88 LLC has opened a new office in London. Located in Soho, the cultural center of London's West End district, the office will serve as a hub for business development and client relations.

IRS Introduces Ship Construction Standards

The International Register of Shipping has submitted goal-based new ship construction standards for verification audit by the International Maritime Organisation.

Maritime Disputes Test China's Peaceful Rise

The South China Sea has become the most important testing ground for the changing economic, political and military relationship between China and the United States.

Finance

U.S.: Stronger Response in South China Sea Needed

By releasing video of Beijing's island reclamation work and considering more assertive maritime actions, the United States is signaling a tougher stance over the

Aramco Offers Rare 1.5 pct Gasoil Cargo

Aramco Trading, the trading arm of oil producer Saudi Aramco, has offered a rare gasoil cargo with a 1.5 percent sulphur content for June lifting from Rabigh, traders said on Thursday.

Golden Ocean: Worst Bulk Market Since 1980s

Dry bulk shipping firm Golden Ocean reported first-quarter earnings below forecasts on Thursday and said its market had gone from "bad to worse" with market conditions not seen in three decades.

News

Lamprell to Implement Software for Automated Manufacturing

U.A.E based offshore jackup rig builder Lamprell Energy Ltd., will implement SSI's EnterprisePlatform software solution to allow its engineering team to automate manufacturing processes.

Israeli Dockworkers End Ports Strike

Israeli dockworkers ended a two-day strike on Thursday that had shut down the country's two main seaports in protest at the creation of new foreign-run ports.   Some 2,

Fluxys LNG Launches Zeebrugge Capacity Consultation

Belgian gas infrastructure operator Fluxys said on Thursday it was launching a market consultation to assess demand for additional capacity at the Zeebrugge liquefied natural gas terminal in Belgium.

Insurance

VIKING’s Top Safety Offerings at Nor-Shipping

Marine safety equipment leader VIKING Life-Saving Equipment will appear in force at Nor-Shipping 2015, displaying both innovative products and services that

Shell CEO Backs Fossil Fuels, Climate Change Warnings

The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said on Friday.

CMA CGM Implements War Risk Surcharge in Yemen

French container shipping company CMA CGM said it has implemented a War Risk Surcharge on all shipments to Hodeidah, Yemen.   Applicable with immediate effect,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair 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: 0.3679 sec (3 req/sec)