Steamship Mutual set 5% premium increase for 2012

At their Board Meeting on 25th October the Directors of the Steamship Mutual reviewed the Club’s open policy years, as well as claims in earlier years, and considered the premium ratings required for the 2012 policy year.

The Board noted that back year claims (those in the policy years up to 2009/10) had increased above projections during the early part of 2011, although over more recent months there has been some improvement in prior year claims compared to projections.  

For 2010/11, claims are developing satisfactorily, at lower levels than projected for the year.

In 2011 thus far, claims (notably crew) are higher in both number and amount than those reported at the same point last year, with more high value (excess of US$1 million) claims for Cargo, Fixed and Floating Objects and on charterers’ covers.

These developments appear to reflect a degree of upward pressure upon claims which, it seems, has not yet been reversed by slowing global growth.

Despite turbulent financial markets, the combined portfolio of the Club and Trust has maintained an overall return of 2.2% to date.

Against this background the Board decided to increase premium ratings by 5% across all areas of the Club’s business, and to increase deductibles to a minimum of US$5,000 and by US$1,000 for deductibles below US$25,000.

Release calls have been reduced for the 2009 and 2010 policy years, to 5% and 15% respectively, and for the 2011 and 2012 policy years set at 20%.

Gary Rynsard, CEO, commented,

“The Board was naturally sensitive to the extremely difficult conditions in the freight market. Although claims in the current year are not a cause for concern there are signs of claims inflation, in particular crew claims. This allied to the effects of the replacement of older higher rated tonnage with new lower rated tonnage means that premiums must be increased. The Board decided that a 5% increase in premiums over all covers and a modest increase in deductibles was the appropriate response to ensure the continued financial strength of the Club.”

…Ends…

 Note to Editors: Additional photography and comments are available upon request.

Press contact:

Jackie Callard
+44 (0) 20 7650 6515
jackie.callard@simsl.com

About Steamship Mutual

Steamship Mutual (managed by Steamship Insurance Management Services Limited) is a leading provider of Protection & Indemnity (P&I) insurance. As one of the largest P&I Clubs in the International Group, Steamship Mutual insures a diverse range of shipping around the globe, for both shipowners and charterers.

Steamship Mutual offers a comprehensive range of P&I products and ancillary covers. The Club consistently delivers a first-rate service to its Members, providing high quality professional claims management and services, backed by a stable financial position and strong free reserves.

With offices in London, Bermuda, Hong Kong, Brazil and correspondents in every major shipping port worldwide, Steamship Mutual employs highly professional and experienced staff including qualified lawyers, ex-senior mariners, and specialist insurance and claims experts.

For further information visit: www.simsl.com