UK P&I Club has announced a 2.5% renewal rate increase for the 2016 policy year which it claims is “below the level of claims inflation”.
The increase compares with a 3.5% rate hike for the 2015 policy year.
The club said that the changes reflected “continuing stress in certain sectors of the shipping market”.
“The 2.5% General Increase highlights the board’s determination to maintain a highly disciplined approach to underwriting to secure the long term stability of the club,” said Alan Olivier, chairman. “The Board is equally determined to support our members in challenging economic conditions. We are pleased, given our strong capital position, to be able to reduce the premium on 2014, which was a good year for the club.”
The board also declared a Mutual Premium Discount of 2.5% on the total mutual call for the 2014 policy year.
“A benign claims environment in 2014 and 2015 has enabled the club to deliver another year of good results,” said Hugo Wynn-Williams, chief executive of the UK Club’s managers, Thomas Miller P&I (Europe).
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