THERE ARE still thirteen P&I Clubs in the International Group…just!
If you think that sounds not exactly like a headline, you are readily forgiven. But think of it another way. This last year, six members of the International Group of P&I Club made unbudgeted calls on their own members to the tune of some $500m. Without that the IG would have suffered a total shortfall of $1bn. That’s right ONE BILLION DOLLARS!!
The excellent annual P&I report by insurance brokers Tysers was released in October and an update has just landed on our desks confirming that Gard will not be making any standard increase on Feb 20 compared with most clubs’ 5% and the Japan Club’s 12.5%.
The Introduction makes no bones about it – a smaller group of larger merged clubs would offer more stability. So, think again, dear reader. It’s quite something that this big old beast of a recession has not pushed one or two clubs over the cliff or sent them running into each other’s arms.
The Tysers report argues that February’s P&I renewal frenzy should really be a display of restraint; after all, how will clubs be able to justify inflationary increases this year given reducing claim values and improved investment returns?
And who made it into the P&I Premier League this year? Well, after one relegation to the Second Division, the elite group at the top is Gard, Standard, North, Skuld and Britannia. Well done you!
If you don’t already have one, you should get your hands on a copy of the report: www.tysers.com