The Standard Club P&I premiums rise
Mutual insurance association, The Standard Club, has seen a five per cent general increase in P&I premiums for the February 20, 2015 renewal.
The increase has been set slightly below the Club’s level of claims inflation which is around six percent. The Club said this reflects its financial strength, high quality membership and level of expected investment income.
Free reserves have risen by 52 percent, total insured tonnage by 19 percent to 135 million gross tons (gt) and premium income by 35 percent over the last five years.
Its investment performance has been in the top quartile of the International Group of P&I Clubs over the five financial years to February 20141.
Jeremy Grose, chief executive of Charles Taylor, the group that manages The Standard Club, said: “Our strategy is to deliver long term growth for the Standard Club, based on the twin principles of high quality membership and financial security. This has enabled the board to set an affordable general increase that reflects the level of risk and claims the vast majority of our members bring to the club.
“We are committed to delivering a fair renewal to all members - where a member’s premium is out of line with their risk exposure or claims experience, we will negotiate acceptable terms which ensure their premiums are not being subsidised by other members. We are also committed to offering our members first class security and have not made a supplementary call in over 20 years.”
John Reily, director of underwriting, Charles Taylor, added: “The board has set a renewal which recognises the difficult economic environment for many ship owners, without compromising the financial strength of the club. We will continue to focus on insuring owners with the highest operational standards and will work closely with members through our safety and loss team to improve standards further wherever possible.”