The Board of the West of England P&I Club, an insurance provider to the global maritime and offshore industries, has announced a 15% general increase for mutual P&I and FD&D Members.
The increase reflects another challenging year for the P&I industry, as record IG Pool claims and pandemic-related liabilities remain a persistent challenge.
The Pool continues at record levels in terms of the magnitude of claims and it warns that this trend shows no sign of abatement.
At the six months position this year, the incurred cost of the Pool already exceeds that of the same position in 2020 which was itself a record high.
Covid-related liabilities also continue to be higher than anticipated, and, while Club is continuing to provide assistance to its Members, it ultimately sees global vaccination efforts as key to overcoming this challenge.
West has repeatedly said that rates are generally too low and must increase to better equate premium with claims, especially where a low investment return environment means that investment returns will not support continued technical losses.
“Premium increases are never welcome but the continuing impact of a number of external factors on Clubs means corrective steps are unfortunately required,” said Group CEO Tom Bowsher.
“West is taking decisive action now to address the situation and our Members can be confident that we will continue to do whatever is necessary to safeguard the Club’s financial strength.”
