Our latest P&I Club Renewal Update 2023 provides information on P&I club renewal policies, supplementary call history, general increase history, International Group reinsurance rates, and P&I release calls.
The tracker below provides details of the renewal policies announced. Note that in every case the anticipated increases in all categories of International Group Excess of Loss reinsurance rates will be applied separately to members’ rates.
|Date of committee meeting||General increase||Percentage general increase P&I||Percentage general increase FD&D*||Deductible changes||Comments||Link to P&I club announcement|
|American||16th & 17th Nov||N/A||N/A||N/A||All deductibles from US$ 10,000 to US$ 50,000 will be increased by 10%, and any deductible below US$10,000 will be increased by US$ 1,000.||While no General Increase has been set, an increase of at least 10% on expiring rates has been mandated. Further adjustments will be made depending on risk and existing terms of entry. A supplementary call of 30% has been levied against the 2021 Policy Year which will be debited in two equal instalments on 20th October 2023 and 20th January 2024.||American's announcement|
|Britannia||25th Oct||N/A||N/A||N/A||New minimum P&I deductibles: crew US$7,000 cargo US$19,500all other claims US$13,500.||Britannia has no general increase but a “target” overall increase of 10% for P&I and 15% for FD&D. In practice, at prior renewals, Britannia has sought to apply its target increases to all members regardless of record, making it difficult to see any difference between a general increase and a target increase. No Capital Distribution has been announced.||Britannia's announcement|
|Gard||3rd Nov||N/A||N/A||N/A||N/A||Members should expect an increase of between 5-7% with an acceptable record. Owners’ General Discount of 5% will be given on the agreed ETC for the 2023 policy year. As with Britannia, where such targets are applied to members without reference to individual loss records, they might just as well be termed “General Increase||Gard's announcement|
|Japan||28th Nov||YES||10.00%||10.00%||N/A||Japan Club have announced a 10% general increase for P&I and FDD premiums. In addition Japan Club are to consider an unbudgeted supplementary call of 25% on both the 2020 and 2021 policy years. The final decision on the Supplementary Calls will be made in February 2023. From 20th February 2023 P&I and FDD Premiums will be paid under a Mutual Premium system rather than Advance Call.||Japan's announcement|
|London||18th Oct||YES||0.00%||0.00%||N/A||No general increase is set and renewal terms will be based on individual Member loss records and risk profiles incorporating the anticipated impact of inflation on future claims for P&I and FD&D.||London's announcement|
|North||22nd Nov||YES||10.00%||15.00%||All crew and people related claim deductibles below US$ 50,000 will be increased by a minimum of US$ 2,500. All cargo and other claims deductibles will be increased by a minimum of US$ 1,000.The FD&D deductible remains at 25% with a minimum of US$ 10,000 per claim, but the maximum limit of US$150,000 per claim has been removed.||All P&I and FD&D premiums and terms will be robustly reviewed and adjusted to ensure they reflect performance and exposure.||North's announcement|
|Shipowners’||31st Oct||YES||0.00%||0.00%||All deductibles under US$ 50,000 will be increased by 10% but subject to a minimum monetary increase of US$ 500.||10% Increase in premiums will be applied to Yachts. Members operating Dry Cargo vessels will also be subject to increases depending on claims record.||Shipowners' announcement|
|Skuld||9th Nov||N/A||N/A||N/A||N/A||It will be necessary to achieve an overall ETC adjustment of 10% across their Mutual product. P&I claims will now be abated at US$ 3 million and all Charterers and P&I Fixed records will now include costs of running the business.||Skuld's announcement|
|Standard||14th Oct||YES||10.00%||10.00%||The board is determined to increase all deductibles by 10%, subject to a minimum increase of US$ 2,000 for crew and cargo claims. No change to FDD deductibles. Additional premium adjustments will be required should the member prefer to maintain existing deductibles.||The board has decided to apply a general increase of 10% to all members P&I and FDD premium. Additional contributions will be sought from members with adverse records. NorthStandard merger will commence with effect from the 20th February 2023.||Standard's announcement|
|Steamship||25 Oct||YES||7.50%||7.50%||All P&I deductibles under US$50,000 to be increased by 10%||Managers have been instructed to correct individual Member premium ratings where necessary.||Steamship's announcement|
|Swedish||8th Dec||YES||10.00%||15.00%||Club minimum deductibles as follows;
- Cargo US$ 15,000
- Crew US$ 10,000
- Third Party US$ 25,000
- Other liabilities US$ 10,000 Deductibles already above this minimum are to be increased by 10%.
|The P&I General Increase and/or adjustment will be applied to the net 2022/23 premium (gross premium less commission if applicable). Once the excess reinsurance cost for 2023/2024 are known, the old excess reinsurance cost will be taken out of the new net premium and replaced with the new cost of the excess reinsurance applicable for policy year 2023/2024. Any commission will then be calculated/added and the new gross premium for 2023 will be confirmed.||Swedish's announcement|
|UK||7th Nov||YES||10.00%||Remain unchanged at US$ 15,000 per event including fees and expenses. The Club may propose higher deductibles as part of the renewal terms for Members with adverse records.||Members with adverse records should anticipate higher increases. For the 2023 policy year, the mutual premium will be payable in three instalments during the policy year. Previously, mutual premium has been payable in four instalments.||UK's announcement|
|UK Defence Club||17th Nov||YES||5.00%||N/A||The UK Defence Club have confirmed that the 5% General Increase is a minimum premium increase across the Membership for the 2023/24 policy year. Increases will be in excess of this where Shipowners have adverse loss records. Shipowners that enter their full fleet with the UK Defence Club will receive a 2.5% continuity credit to their 2023/24 premium.||UK Defence Club's announcement|
|West||16th Nov||YES||10.00%||15.00%||No change will be made to the Rules Deductible for P&I entries however all other deductibles will be increased by 10% and a minimum increase of US$2,500 will be applied. For FD&D entries no change will be made to the one fourth deductible formula.||A 10% standard surcharge has been set to apply to all mutual premium rates, rates will be adjusted further to reflect members with adverse records. For both P&I /FD&D an estimated total mutual call to be payable in 4 equal instalments, each of 25% of the total mutual call.||West's announcement|
To discuss further details of a club’s policy, or other P&I club issues, please contact your Marsh Specialty adviser.
This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and any analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. LCPA: 22/517