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21st December 2022
P&I mutual entries
- A 10% general increase for the policy year 2023/2024.
- The new call will be adjusted by any changes in the International Group’s reinsurance cost.
- The deductibles will be increased as follows:
➢ Cargo Recommended minimum USD 15,000 / +10% if above minimum.
➢ Crew Recommended minimum USD 10,000 / +10% if above minimum.
➢ Third Party Recommended minimum USD 25,000 / +10% if above minimum.
➢ Other liabilities Recommended minimum USD 10,000 / +10% if above minimum.
- A release call is set at 15%.
At the recent Board meeting, the Club has considered its financial position and decidedthe renewal requirements for the 2023 Renewal as above. In addition, the Club circular sets out the mainhighlights:
- The Club’s average cost for large claims remains at a stable level.
- The trend of an overall increase in claims frequency noted in previous years has however continued into 2022.
- Given the current geopolitical uncertainties, coupled with a slow recovery from Covid, the Club is seeing an impact on claims due to the inflation and as a result, the Club has increased the figure for expected claims inflation from 3% to 6%.
- There has been significant volatility in investment markets during 2022 affectinginvestment income but the Club’s solvency remains strong despite the negative impact on the reserves.
FDD mutual entries
- A 15% general increase for the policy year 2023/2024.
- The Management to contact each Member individually to discuss renewals
- Deductible on costs are set as follows:
➢ USD 12,000 and 25% in respect of costs in excess of USD 250,000.
- An estimated release call is set at 5%.
At the recent Board meeting, the Club has considered its financial position and decided the renewal requirements as above. In addition, the Club circular sets out the main
highlights:
- The cover is limited to USD 5 million for any one dispute unless agreed to be USD10 million for any one dispute (see also Rules 5 and 6 in respect of Discretion ofthe Association).
- The Club does not cover disputes involving amount of USD 7,500 or less unlessotherwise agreed, although advice is available on a case by case basis.
This Newsletter, and our information archive, can also be accessed at www.plferrari.com
P.L. FERRARI & CO S.r.l.
P.L.Ferrari – A Member of the Lockton Group of Companies This newsletter is intended solely as an overview of the marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of printing andwe cannot be held liable for the omission of any information within the newsletter.
