Shipowners’ Club

United Kingdom P&I insurer Shipowners’ Club has joined other P&I clubs in announcing a general increase in 2020. Shipowners’ Club announced 5% general increase on premiums. Shipowners’ Club increased premiums after six (6) years of no rises. Shipowners’ Club will add 5% to the cost of cover in 2020. Recently, Shipowners’ Club reported $38 million loss. London based P&I (Protection and Indemnity) insurer Shipowners’ Club has a policy of underwriting to a breakeven position. Two years ago, Shipowners’ Club’s board has agreed to utilize Shipowners’ Club’s strong capital position in order to subsidize its underwriting position. Therefore, Shipowners’ Club provided insurance at below cost. But, providing insurance at below cost approach cannot be sustained indefinitely. Up to now, UK P&I Club, the Standard Club and Steamship Mutual announced to increase premiums 7.5% at renewal in 2020. According to Shipowners’ Club, deductibles will be renewed. Shipowners’ Club’s managers will review individual members’ claims records and operational risks, apply commensurate adjustments in terms where appropriate. At the halfway point in 2019, Shipowners’ Club reported a combined ratio of 105.9%, with an underwriting deficit of $5.7 million. underwriting deficit of $5.7 million represented a deficit marginally higher than budgeted, as shipowners’ claims rose in both 2018 and 2019. In 2019, Shipowners’ Club was impacted by two major claims of more than $5 million. Furthermore, there is a general increase in claims in the band between $500,000 and $5 million. Shipowners’ Club anticipates that the underwriting deficit reported at mid-2019 stage will continue for the year. In 2020, Shipowners’ Club expects to see continued growth in member numbers and total tonnage.