Tailor-made cover helps DGS secure 6 percent growth in 2016 P&I renewals; total BE&O tonnage exceeds 5 million metric tons
DGS Marine, a global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I facility, announced growth figures following the completion of P&I renewals, with premium growth of 6 percent, tonnage growth of 12 percent and total vessel numbers up by 17 percent.
These results mark significant further growth in DGS Marine’s fixed premium P&I business, which has reached a record high. The total number of vessels entered into the BE&O P&I facility is now over 2,280 and the total tonnage of these vessels has risen from 4.8 million metric tons to over 5.3 million metric tons. Premium income has also grown to over $38 million.
Commenting on the P&I renewal season, David Skinner, Managing Director of DGS Marine, said, “The 2016 P&I renewals season has been a very challenging time for all providers of P&I cover, which reflects market conditions around the globe, particularly in the Far East
, and the tough economic times that shipowners continue to experience. Owners are understandably seeking to control all vessel costs, which includes looking for the very best deal on their P&I cover. We have been able to respond proactively to this pressure by tailoring an owner’s cover to the specific needs of each of their vessels. P&I normally includes a range of named perils and if not all are necessary, we can help an owner to reduce their premiums by providing only what they do require.
“We have also been able to reward our Assureds that remain with us by offering lower premiums through our Continuity Credits scheme, as well as working together with owners that would like to switch, but are discouraged by the high release calls charged by IG Group members, which can be as high as 30-40 percent of their annual premium. We have advised those owners on the option to phase the withdrawal of their vessels in order to mitigate against such punitive release fees.”
The 2016 P&I renewal season has also seen the market share of fixed premium P&I continue to grow at the expense of the mutual cover provided by the IG Group. According to David Skinner, this reflects continued demand for greater cost control and certainty among owners, as well as growing confidence in fixed premium P&I cover as a credible, high quality alternative:
“We expect fixed premium to secure a double-digit share of the P&I market in the near future, as more and more owners recognize the merits of fixed premium P&I as a more cost-effective alternative and one that ensures that they are assessed purely on their own claims records. To put it simply, the tug owner doesn’t want to be exposed to the claims of the large tanker owner.
“What is more, not only do owners enjoy greater certainty and transparency over their insurance costs
, the quality of the service available from leading fixed premium providers is equal to anything on offer from the IG Clubs. Here at DGS Marine, we provide up to US$1 billion of cover, if required by our customers and their charterers. We are also ready to provide immediate support for our Assureds, whenever and wherever the need arises, whatever the nature of the claim and no matter how big or small the challenge that they face.”