’Changes in established navigational routes, two major international conflicts and other geopolitical challenges have created an abnormal claims environment,’ says chair
Protection and indemnity (P&I) club North Standard has announced that it will push through a 5% general increase in its premiums for 2025/26.
The firm said it had made the “precautionary” move due to increased exposure to larger claims and continuing supply chain volatility.
It revealed that 14 large claims of more than $1m were made in the first half of 2024 and was now forecasting a net combined ratio in excess of 110% for the year ending 20 February 2025.
This would follow consecutive sub-100% performances in 2023 and 2024.
Cesare d’Amico, chair at North Standard, said: ”Changes in established navigational routes, two major international conflicts and other geopolitical challenges have created an abnormal claims environment, with incidents occurring in locations where the ships concerned would not normally trade.
“It is in these challenging circumstances that shipping has most need of its best P&I providers.”
How the increase will be applied
The growth in claims comes as the firm continues to increase its specialty sector business, with it saying that a ”larger club inevitably faces potential exposure to more claims”.
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The 5% general increase will apply to all P&I members, although each renewal will be agreed individually based on a review of claims and risk exposure.
A rating increase of 5% would also apply to FD&D risks.
Paul Jennings, managing director at North Standard, said: “The directors are convinced that these steps align with our principles of promoting fair and equitable mutuality within the P&I sector, combined with strong corporate governance.”
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