The Standard Club reports ‘successful’ January renewals
Specialist marine and energy insurer the Standard Club has reported it has “successfully renewed 95 percent” of the expiring portfolio and welcomed a small number of high-quality new members.
It said that many existing members have expanded their entries and in a number of cases consolidated their fleet into Standard from other clubs.
However, the insurer anticipates that while the 2020/21 policy year is forecast to perform better than 2019/20, there is still likely to be an underwriting deficit. This is due to the frequency and cost of large claims arising in the International Group Pool, which has affected all clubs, but it also reflects the general low level of premium rating, the club said. The “defensively positioned” investment portfolio has made a positive contribution despite market turbulence caused by the pandemic and overall, the club’s finances remain strong and reserves will remain in excess of regulatory and rating agency requirements, its statement added.
It said that the board had made an early decision to address these issues and agreed a budget for the 2021 renewal “to ensure breakeven underwriting can be achieved in the years ahead”. The club set a general increase to ensure fairness among members alongside a detailed analysis of individual members' rating adequacy, terms and deductibles against their historic and forecast claims exposures.
Mark Collins, director of underwriting at the Standard Club, said: “2020 was a challenging year for all and we have continued to support our members through these difficult times. We, like all clubs, have seen a greater frequency of expensive market losses than predicted which has had an impact on underwriting.
“We have successfully completed our renewal in line with the budget set by the board with a view to returning to breakeven underwriting, so we can continue to support our members in the long-term.
“It has been a fascinating first 12 months in my new role as Director of Underwriting and I never would have imagined having to oversee my first renewal in a 'virtual' environment. I am proud of the result we have achieved and am fortunate to work alongside a talented and experienced team who have the opportunity to support such a high quality and loyal membership.”
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