Nick Shaw, ceo of International Group of P&I Clubs, says there is call from most clubs for an increase in premium this year as they have seen an increase in pool claims in the past three years and sizes of claims have become slightly larger.
Speaking at the Hong Kong Shipowners Association Luncheon as part of the Hong Kong Maritime Week 2019, Shaw said that the key factors of increased claim sizes could be the cost of bunker removal and greater government intervention. Increasing fear of environmental pollution and locations of the incidents also plays a part.
Shaw explained that claim for incident that happened in a remote location could be ten times that as if the same event happened close to where there is easy access to salvage services.
Shaw said one of the key functions of the International Group of P&I Clubs was to share risks and prevent individual clubs to go bust is to represent shipowners around the world.
An area for concern for shipowners and insurers is that the Group has seen inconsistent in application of IMO treaties among different countries. One of the initiatives the Group is involved with is to gather as many IMO nations as possible to try to get them to agree consistent test for the rights and limits of liability of shipowners, and to make that almost impossible to break. This would give more certainty to the shipping community and in turn allow shipowners to buy cheaper insurance in the market.
The Hong Kong Maritime Week 2019 spans from November 17 to 23, with a series of activities covering shipping and maritime, ship finance, maritime law and arbitration, maritime insurance, ship management, maritime technology, port and logistics and maritime education and career.