Our latest P&I Club Renewal Update 2022 provides information on P&I club renewal policies, supplementary call history, general increase history, International Group reinsurance rates, and P&I release calls.
Update on the fourth quarter 2021 P&I club committee meetings
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.
P&I Renewal Tracker
| 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 | 18 Nov | Yes | 12.5% | 12.5% | No changes. | The club has advised that 12.5% is a minimum increase for both P&I and FD&D. Supplementary calls on the 2018 and 2019 policy years. Members are advised to budget for a 35% supplementary call on the 2020 policy year but a decision on this will be deferred until the first half of 2022. Any uplift in the club's own whole account reinsurances will be adjusted separately and in addition to the minimum 12.5% increase. | American's announcement |
| Britannia | 19 Oct | No | N/A | N/A | New minimum deductibles: crew US$6,000/cargo US$18,500 /all other claims US$12,500. | While there is no general increase for Britannia members, the club has a target of increasing its overall premium income by 12.5% and its FD&D premium by 15% at the 2022 renewal. Britannia simultaneously announced that on 6th December 2021 it will distribute to members US$25million in surplus capital. | Britannia's announcement |
| Gard | 25 – 28 Oct | No | N/A | N/A | No changes. | While there is no general increase, members rates will be adjusted to reflect their risk profile and claims record. An owners discount of 5% on the agreed ETC for the 2022 policy year has been agreed by the board. | Gard's announcement |
| Japan | 17 Nov | Yes | 10% | 10% | No changes. | The calculation of loss records will change from a gross basis to a net basis (reinsurance, pooling, and abatement costs will also be taken into account). The number of years on the loss record used for renewal will increase from five years to six years. | Japan's announcement |
| London | 13 Oct | No | N/A | N/A | No changes. | No general increase is set but the club is targetting an increase in rates of 12.5% across both P&I and FD&D. Supplementary calls on the 2019, 2020, and 2021 policy years aiming to raise around US$70 million have been announced. | London's announcement |
| North | 17 Nov | Yes | 15% | 7.5% | All deductibles below US$50,000 except for crew and people are to be increased by a minimum of US$2,500 per deductible. All deductibles below US$50,000 for crew and people are to be increased by a minimum of US$5,000 per deductible. | 7.5% of the 15% P&I general increase is compulsory for all members irrespective of record and performance and is attributable to the costs of the clubs' IG pool claims. | North's announcement |
| Shipowners’ | 8 Nov | Yes | 5% | 5% | No changes. | As in previous years, the club will absorb any change to the cost of the XSRi programme. | Shipowners' announcement |
| Skuld | 2 -4 Nov | No | N/A | N/A | No changes. | The minimum market adjustment of 10% for all mutual P&I and FD&D members will be regardless of performance. Additional individual adjustments will be made for members with challenging records. | Skuld's announcement |
| Standard | 18 Oct | Yes | 12.5% | 12.5% | All P&I deductibles to be increased by 10%, subject to a minimum increase of US$2,500 for cargo and US$7,500 for collision/fixed and floating objects. There will be no change to FD&D deductibles. | The club will apply additional premium adjustments for those members wishing to maintain their existing deductibles. | Standard's announcement |
| Steamship | 25 -26 Oct | Yes | 12.5% | 12.5% | Deductibles of US$100,000 or below to be increased by 10%. | None | Steamship's announcement |
| Swedish | 1 - 2 Dec | Yes | 12.5% | 15% | Deductibles to be addressed individually for members. | The announced general increase and adjustments will be applied to the net premium applicable for the policy year 2021/2022 (gross premium less commission if applicable.) | Swedish Club's announcement |
| UK | 18 Oct | Yes | 12.5% | UK defence will announce separately. | No changes. | Members with “adverse” records are warned to expect higher increases (than the 12.5% general increase). | UK Clubs' announcement |
| West | 14 Oct | Yes | 15% | 15% | Other than “Rules” deductibles, all deductibles to increase by 15% and a minimum of US$2,500. | The language of West’s announcement indicates the 15% general increase will be applied as a minimum, with additional increases or changes in terms to be applied to members with adverse records. | West's announcement |
* FD&D is freight, demurrage and defence
To discuss further details of a club’s policy, or other P&I club issues, please contact your Marsh Specialty advisor.
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