UK Club Circular 10/21: 2022 Renewal & Open Policy Years

Zurich river

OUTLINE

  • The Board has set a general increase of 12.5 per cent on all mutual premium rates for the 2022 renewal to correct the underwriting deficit. Members with adverse records should anticipate higher increases.
  • The standard deductible will remain unchanged at US$15,000 per event, including fees and expenses.
  • Any change in the cost of the International Group reinsurance programme will be passed on to the mutual Members.

TO THE MEMBERS

2022 RENEWAL

At their October meetings in Zurich and Rotterdam, the Boards reviewed the financial position of the Club including the performance of the open and closed policy years and has set a general increase of 12.5 per cent on all mutual premium rates for the 2022 renewal. The decisions have been agreed by the Club and its subsidiaries, including UKNV which underwrites all EEA risks.

Release calls

In assessing release calls, the Directors take account of premium risk, catastrophe risk, reserve risk, counterparty default risk,market risk and operational risk.

For the 2022 policy year, the release call is set at 25 per cent of mutual premium plus any outstanding instalments of mutual premium. The mutual premium for 2022 will be payable in four instalments.

Deductibles

For the 2022 policy year, the standard deductible will remain US$15,000 per event, including fees and expenses (or the dollar equivalent in other currencies). The Club may propose higher deductibles as part of the renewal terms for Members with adverse records.

IG Reinsurance

Any change in the cost of the International Group reinsurance programme will be passed on to the mutual Members.

OPEN POLICY YEARS

2019 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 5 per cent.

2020 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 10 per cent.

2021 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 15 per cent of mutual premium plus any outstanding instalments of mutual premium.

Yours faithfully

THE MANAGERS

For more information

Please contact your usual Club contact.

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Staff Author

UK P&I

Date20/10/2021

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