Mutual insurers increasing premiums for 2014 policy year

Steamship Mutual said the premium increase necessary given the club’s underwriting performance and the adverse impact of claims over the last three policy years. The P&I club said the overall value of claims for the current policy year is expected to be high, “a continuing trend in recent years”.

“Given the continuing difficulties in the freight market the Board has only after most careful deliberation concluded that the increase in overall cost of claims necessitates an increase in premiums,” said Gary Rynsard, ceo of Steamship Mutual.

The move follows an announcement by North P&I that it would be increasing its premiums by 7.5% coming policy year.

North stressed it was financially secure with an “A” stable rating from Standard & Poor’s but had “not been immune to the impact of volatile investment markets, premium dilution associated with fleet renewal programmes and a deteriorating claims environment, which has seen an escalation in the number and cost of claims, particularly over $1m.”