Stability predicted for marine insurance clubs

Marine insurance clubs can look forward to a stable outlook for protection and indemnity according to the sector report “Industry Risk Analysis: Protection & Indemnity Clubs,” published ahead of its customary February 20 renewal date by rating agency Standard & Poor’s Corp.
Rate increases will be sought out by most protection and indemnity clubs at the Feb. 20 renewal, according to S&P’s. The February 20 renewals may however, be lower than anticipated due to the strengthening of “free reserves” held by protection and indemnity clubs.
Members of the “International Group of P&I clubs”which represents 14 of the largest P&I clubs want to implement modest increases on members at the February renewal.
S&P’s says that these anticipated increases may go up to 12.5%. However, the report also indicates that rate increases will be lower than in previous years sources indicate last years increases were an average of about 7% on ship owner’s.
Rate increas
S&P said it was maintaining a stable outlook on The outlook on the P&I market remainns stable, because S&P’s says the club offers strong financial flexibility. This strength, according to S&P’s is emphasized by their ability to call on members, their competitive position, and their strong capitalization.
However, the report notes that there is volatility and unpredictability of loss present in the shipping industry.