At its annual board meeting on 29 October 2012, the Board of the UK P&I Club has agreed that the general increase for 2013 renewal will be 7.5 per cent.
The premium rating increase is in addition to any increase in the cost of the International Group reinsurance premium for 2013 for the mutual members, which will be determined in the new year.
Recognising the challenges faced by its members and the Club’s strong capital position, the Board has separately declared a Mutual Premium Discount of 2.5 per cent on the total mutual call for the 2011 policy year. The discount will amount to a 10 per cent deduction for all mutual members for the final instalment of the 2011 call due in December this year.
The 7.5 per cent general increase reflects the Board’s determination to keep the Club’s underwriting in balance. Given ship-owners are facing extremely challenging conditions and the Club’s strong capital position it is reducing the premium on 2011 which was a good year for the Club. However, the Board feels it would be clearly against the interest of members if a club does not increase premiums in an inflationary environment and potentially create a problem for the future.