Twelve of the 13 mutual insurance companies' marine protection and replacement clubs that are part of the international group of P&I clubs will not increase the prices of the upcoming renewal for shipowners for the 2019-20 policy, credit rating agency A.M. Best Co. Inc. said Monday in a report.
But the lack of general increases from most clubs does not necessarily mean that prices will not rise for poor activity at the 2019 renewal, Best says.
"Renewals in the sector are increasingly driven by analysis of individual loss records and risk exposure, with more clubs using deductibles to control exposure." Best said in the report.
Total competition remains strong, exacerbated by a growing number of insurers offering
Shipping companies also look to cut costs, among the ongoing challenging commercial conditions, says Best in the report.
"With free reserves across the international high-level group, strengthened by several years of positive results, balance sheets are strong and clubs find it difficult to justify general increases to members," Most Reported. "
Luxembourg West by the Engla nd Ship Owners Asset Mutual Insurance Association was the only club that announced a 5% general increase in tax rates for 201
The protection and compensation industry is dominated by the members of the London-based international group P&I clubs, which together assure about 90% of the world's ocean-going tonnage.