Q4 2021

Protection and Indemnity Club Renewals

The average change in 2022 advance calls (premiums) for mutual P&I entries in the individual P&I clubs that form the 13 strong International Group of P&I Clubs[i] is approximately 12% as an average of those imposing general increases.

Aerial top view of green oil tanker cargo vessel under cargo operations on typical shore station.

The average change in 2022 advance calls (premiums) for mutual P&I entries in the individual P&I clubs that form the 13 strong International Group of P&I Clubs[i] is approximately 12% as an average of those imposing general increases (excluding Skuld and Gard, which will access individual member’s performance). This compares to an average rise of 6.50% in 2021.

The general reasoning behind premium increases from individual clubs has been the cost of mutual P&I claims in the current year being at an elevated level, with a high frequency of claims involving COVID-19 being a particular factor, along with the average severity of claims on the IG Pool being unusually high.

The individual changes are as follows:

American Steamship Owners Mutual Protection and Indemnity Association 12.5%
The Britannia Steam Ship Insurance Association 12.5%*
Gard P&I **
The Japan Ship Owners' Mutual Protection & Indemnity Association 10%
The London Steam-Ship Owners' Mutual Insurance Association 12.5%
The North of England Protecting & Indemnity Association 15%
The Shipowners’ Club 5%
Skuld Mutual Protection and Indemnity Association **
The Standard Club 12.5%
The Steamship Mutual Underwriting Association 12.5%
The Swedish Club 12.5%
United Kingdom Mutual Steam Ship Assurance Association 12.5%
The West of England Ship Owners Mutual Insurance Association 15%

*overall target but each member to be assessed separately
**each member assessed separately but indicated rate increases will be applied

Source: individual club circulars


[i] before adjustment for individual loss records, changes to risk profile, or for changes in reinsurance costs


January 2022

Energy & Power Insurance Quarterly Newsletter

 

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