NorthStandard P&I issues first general increase since merger

In its first Pre-Renewal Report since last February’s merger between North P&I and The Standard Club, the merged Club’s directors said that the increase represents a responsible approach to underwriting at a time of persistent shipping market uncertainties.

NorthStandard directors said that the 5% increase was prudent in light of continuing geopolitical conflict, sanctions, inflationary pressures, downsized economic forecasts, and shipping market volatility.

The 5% increase is in line with several other Clubs which have announced 5% hikes including Gard, Shipowners, and Steamship. However, it is less than the 7.5% announced by the UK and West of England P&I Clubs. The American, Brittania, and London Clubs have still to reveal their pricing strategies.

NorthStandard said that mutual poolable tonnage entered with the Club is continuing to increase, indicating what it called the ‘validation of consolidation’. Since the new organisation’s launch on February 20, mutual poolable tonnage had increased by just over 2.5% by the end of August, to a little more than 260 million gross tons in total.

The new Club also revealed nine claims of more than $1 million at the half year point, more than the total number for the whole of 2022-23.

NorthStandard Chairman, Cesare d’Amico, conceded that general increase hikes are never welcome. But noted: “Transparency is essential to communicate our budgetary requirements for 2024-25. The claims environment continued to be stable in the first half of 2023, but claims costs climbed due to inflationary pressures in the global economy.”

Commenting on the merger, the Club’s Co-Managing Director, Jeremy Grose, said: “The gains of consolidation that maintains service excellence are hard won, but they are nonetheless tangible for all that. Our larger organisation has been shaped to support a strong in-house expertise base across the world. The disruptions we have seen to international political order in recent years, and other global uncertainties indicate that the resulting reach and capabilities will only become more important for delivering the services which are the foundation of our business.”

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