International insurance broker, Aon has suggested that the P&I Clubs of the International Group could quite easily offer ‘general decreases’ at the annual renewal on 20 February.
“The P&I Clubs that make up the International Group continue to sit on an embarrassment of riches, with over US$5bn in the collective treasuries,” Aon said in its latest Asia Market Review.
The 13 P&I Clubs of the International Group will, for the second year running, abstain from imposing general increases on premiums come renewal. Shipowners with tonnage entered with Britannia, Skuld, Standard or Steamship Mutual are also set to receive premium returns in one form or another, as revealed by the latest P&I report issued by broking house, Tysers this month. But Aon insists the Clubs could go further in reducing the insurance burden of their members.
Aon’s report continues: “Aon wonders however, whether ‘General Increase’ is an appropriate consideration in the current market and perhaps a ‘General Decrease’ would be more fitting! On the face of it, this might seem amusing. However, should a Club actually be brave enough to consider a uniform reduction in rates for its Members, this is sure to be much more welcome than the token credits on past years that Clubs have tried to appease Members with of late.
“The Britannia’s ‘membership dividend’ is to be applauded, as is the Gard’s cancellation of last year’s 25 percent deferred call. The Swedish Club has also shown some innovation (and confidence!) with its four percent return on the current year. However, these and other concessions are, in the scheme of the Clubs’ collective progress, fairly insignificant, and a General Decrease would be more readily welcomed by the majority of risk managers and owners that we have spoken to.”