2022-23 Policy Year P&I and FDD General Increases

CLUB

P&I

FDD

DEDUCTIBLES

RELEASE CALLS
2019 / 20 / 21 / 22

American

Minimum 12.5%

Minimum 12.5%

No blanket changes

P&I: 40% / 40% / 20% / 20%
FDD: 20% / 20% / 20% / 20%

Unbudgeted supplementary calls for P&I entries:
- 2018 policy year: 15% of P&I ETC, due in a single instalment on 20th March 2022.
- 2019 policy year: 35% of P&I ETC, due in two equal instalments on 20th May 2022 and 20th October 2022.

Notes:
- The Club has advised "it is expected that a[n unbudgeted] supplementary call for 2020 will be required in due course at a similar level to that of 2019".
- The Club's general increase is stated as a "minimum" and the Club has additionally commented that it will "seek further increases and/or adjustments to insuring conditions reflecting the circumstances of individual Members by reference not only to their historic loss records, but also to all other factors which bear on the future risk they will bring to the Club in 2022 and beyond."
- In addition to passing on excess of loss reinsurance costs, the Club has advised it will seek to pass onto its members any uplift in the cost of the Club’s own, whole-account reinsurances for 2022 for both P&I and FDD.

Britannia

Technical

Technical

New minimum P&I deductibles: Crew - US$ 6,000; Cargo - US$ 18,500; All others - US$ 12,500.

P&I: 0% / 5% / 7.5% / 15%
FDD: 0% / 5% / 10% / 20%

Notes:
- While the Club has not adopted a general increase approach to renewal, they have stated that Members' rates will be adjusted to reflect their individual claims records and risk profiles to achieve a 12.5% increase for P&I and a 15% increase for FDD of Britannia's Estimated Total Call (ETC).
- The Board has agreed a further capital distribution of USD25 million to mutual P&I Members with ships on risk at midnight (BST) on 19 October 2021 (using the same method of calculation for each Member’s share as for prior distributions). The distribution will be made from 6th December 2021.

Gard

Technical

Technical

No blanket changes

P&I: 5% / 5% / 10% / 10%
FDD: 5% / 5% / 10% / 10%

Notes:
- For the 2022 policy year, a 5% Owners' General Discount will once again be available, calculated on the agreed 2022 policy year Estimated Total Call (ETC).
- The Club has advised that owing to the negative claims development, Members can expect an increase in the ETC for owners' mutual P&I entries at the 2022 renewal.

Japan

+ 10%

+ 10%

No blanket changes except for Naiko class vessels

P&I: 5% / 5% / 45% / 45%
FDD: 25% / 25% / 25% / 25%

Notes:
- The club is changing the calculation basis for loss records.
- Introduction of Abatement at US$ 3m.

London

Target + 12.5%

Target + 12.5%

No blanket changes

P&I: 5% / 5% / 15% / 15%
FDD: 5% / 12.5% / 15% / 15%

Unbudgeted supplementary calls for P&I entries:
- 2019/20 policy year – 35% payable by 31st December 2021;
- 2020/21 policy year – 30% payable by 31st March 2022;
- 2021/22 policy year – 35% payable by 31st July 2022.

Notes:
- The Club has advised that rates and deductibles will be adjusted accordingly and in light of the Board’s overarching objective for the Club to deliver sustainable underwriting results and maintain financial strength.

North

+ 15%

+ 7.5%

All P&I deductibles below US$ 50,000 will be increased:
- Crew etc: by a minimum of
US$ 5,000
- All other heads of deductible: by a minimum of US$ 2,500

P&I: 0% / 5% / 15% / 15%
FDD: 0% / 5% / 15% / 15%

Notes:
- The Club has "decided that 7.5% is directly attributable to the costs of meeting the Club’s contribution to the escalating value of IG Pool claims. They have therefore mandated that this contribution will be applicable to all mutual P&I Members, irrespective of their Record and performance".
- They have also commented that "Members with adverse loss records, will of course have their rates and terms adjusted in excess of these minimum requirements"

Shipowners

+ 5%

+ 5%

No blanket changes

None

Notes:
- The club has advised that they will review individual claims records and operational risks, applying commensurate adjustments in premiums and terms where appropriate. This may include adjustments to deductible levels. The Club’s policy of applying selective vessel inspections and management audits will also remain.

Skuld

Minimum + 10% thereafter technical

Minimum + 10% thereafter technical

No blanket changes

P&I: 7.5% / 10% / 15% / 15%
FDD: 7.5% / 10% / 15% / 15%

Notes:
- The Club has commented that commercial (ie non-mutual) P&I renewals will be subject to individual performance adjustments with an additional focus on increased large and attritional claims exposures and increased reinsurance costs.

Standard

+ 12.5%

+ 12.5%

All P&I deductibles to increase by 10%, min increase $2,500 for crew claims, $2,500 for cargo claims, and $7,500 for collision (inc RDC/FFO) claims.

P&I: 0% / 6% / 12.5% / tbc
FDD: 0% / 6% / 12.5% / tbc

Notes:
- The club has commented that they can apply additional premium adjustments for any members preferring to maintain their existing P&I deductibles.
- As a note to the announced general increase, the club will continue to carry out detailed analysis of individual members' rating adequacy, terms and deductibles together with their historical and forecast claims exposures. Members whose ratings levels are currently insufficient to cover the cost of their own claims, reinsurance, and a proportionate share of large market losses, will need to increase their contributions in excess of the general increase.

Steamship

+ 12.5%

+ 12.5%

10% increase in P&I deductibles that are US$100,000 or less.

P&I: 12.5% / 12.5% / 15% / 15%
FDD: 12.5% / 12.5% / 15% / 15%

Notes:
- As per the renewal circular, "the Managers have been instructed to correct individual Member premium ratings where necessary".

Swedish

+ 12.5%

+ 15%

No blanket changes

P&I: 5% / 15% / 15% / 15%
FDD: 0% / 0% / 5% / 5%

Notes:
- From 1st January 2023, Thomas Nordberg will succeed Lars Rhodin as Managing Director.

UK / UKDC

+ 12.5%

+ 7.5%

No blanket changes

FDD: N/A

Notes:
- For UK P&I Club, the Club has stated that "Members with adverse records should anticipate higher increases".
- For UK Defence Club, the full fleet credit of 2.5% will be maintained for the 2022/23 policy year and is available immediately to any Member transferring tonnage to the Club at the 2022 renewal,

West

+ 15%

+ 15%

For P&I, no change to "Rules" deductibles but all other deductibles + 15% min +$2,500.

P&I: 0% / 15% / 15% / 15%
FDD: 0% / 0% / 15% / 15%

Notes:
- The Club has advised that for Members whose records are adverse, de-risking action will be taken where necessary and rates and terms will be increased and adjusted as appropriate to reflect record and/or risk exposure.
- Rates and terms will be increased and adjusted in respect of non-mutual insurances as appropriate to reflect increased reinsurance costs, the Member's record and/or risk exposure.