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Marine P&I clubs may find rate increases difficult to achieve



Marine protection mutuals and indemnity clubs asking for rate hikes from shipowners at the upcoming 2023 renewals may struggle to achieve them, ratings agency AM Best Co said. Inc. in a report on Tuesday.

Clubs are likely to announce an average increase in rates of 7% for the 2023-2024 insurance year, driven both by inflation and the need to improve technical rate levels, Best said.

While that average is down from 11.5% for the 2022-2023 policy year, it’s still at the upper end of the increases seen over the past decade, Best said.

Renewal discussions with shipowners will be tougher this year due to the clubs’ improved insurance performance and a return to more normal trading conditions in the shipping market, the report said.

P&I clubs have seen a sharp turnaround in underwriting performance, with most recording their best half-year results in five years due to the lack of new pool claims for the 2022-2023 policy year so far, Best said.

But investment losses due to turmoil in the bond and stock markets mean most will see losses on the bottom line by the end of the year, Best said.


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