North P&I Club Phase in Members' 2014 Rate Increase
North P&I Club has decided on a 7.5% general premium increase for protection and indemnity (P&I) cover next year and will continue with a moderated payment plan similar to last year.
The increase reflects the board’s commitment to maintaining the financial strength and stability of the ‘A’ rated club in the face of continuing uncertain investment markets and rising claims.
According to North’s chairman Pratap Shirke of ship management group ASP, "North is financially secure and has a strong capital position evidenced by its ‘A’ stable rating from Standard & Poor’s. Our strong underwriting performance also means members have not been burdened by unbudgeted supplementary calls for more than 20 years. However, the club has not been immune to the impact of volatile investment markets, premium dilution associated with fleet renewal programmes and a deteriorating claims environment, which has seen an escalation in the number and cost of claims, particularly over US$1 million."
For the P&I class the directors have decided to apply a 7.5% general increase to all members’ premiums at the February 2014 renewal. Rates will also be adjusted to incorporate any changes in the cost and structure of the International Group of P&I Clubs excess loss reinsurance programme. All deductibles below US$25,000 will be increased by US$1,000 and the deductible for external fees, costs and expenses will increase from 10% to 25%, with a minimum of US$1,000 and a maximum of US$10,000.
UK-based North is a leading marine mutual liability insurer providing P&I, FD&D, war risks and ancillary insurance to 130 million GT of owned tonnage and 40 million GT of chartered tonnage, with 3500 ships entered by 330 members worldwide