Standard Club targets 10% marine P&I rate hike
Mutual marine P&I insurer The Standard Club will hike rates by 10% for the 2022/23 policy year to cover rising inflation and lacklustre investment returns while building some underwriting buffer against volatility in large loss, the group has announced.
The club cited primarily “a difficult investment environment and inflationary pressures on claims costs,” in justifying the move, but admitted a need to bolster underlying results in underwriting.
A downward move in the combined ratio in the current policy year through August 2022 to 97% resulted chiefly from “an unexplained d drop” in large P&I claims. “The club believes further work is required to reach the desired underwriting position.”
“We are conscious of the potential for a more normal pattern of future claims,” club CEO Jeremy Grose said. “We believe that an increase in premium is required to ensure a sustainable club with adequate capital strength.”
Members with “adverse records” will be asked for “additional contributions” above the standard rate hike, Grose indicated.
The Standard Club is currently engineering a merger with North P&I to become NorthStandard, with effect from 20 February 2023. ‘NorthStandard will allow us to build even greater stability, service and strength to support our members through operational, financial and technical performance,” Grose added.
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