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Willis reports ‘relative slowdown’ in claims for International Group of Protection & Indemnity clubs


December 22, 2015   by Canadian Underwriter


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The International Group of Protection & Indemnity Clubs, which write liability insurance for ship owners, is “in the healthiest state in its history,” while the majority of its 13 members are planning to raise premiums 2.5% on renewal in 2016, Willis Group Holdings plc suggested in a report announced Tuesday.

The International Group, which writes liability insurance for ships, has had its first underwriting surplus since 2010, Willis Group Holdings plc reported

The IG market “has announced an average general increase of around 2%, with two or three clubs at zero, the majority around 2.5% and one club at 5%,” commercial brokerage Willis stated in its P&I Review 2015/16 report. “It is almost certain however that market forces will prevail and lower actual renewal results will be widely achieved.”

The IG Group is an unincorporated association comprised of 13 members. Each member is a mutual insurance association that writes third-party liability coverage for the use and operation of ships.

The group “in the healthiest state in its history,” London-based Willis noted in its report.

“Claims remain volatile and investment markets fragile, but a relative slowdown in number of major claims has allowed the IG market to make its first overall underwriting surplus since 2010.”

Nine out the 13 members of the IG Group have reported an increase in underwriting results, Willis noted.

“The 2016 renewals will likely prove contentious as general increases come under pressure from ship operators looking to reduce costs in challenging freight markets whilst a number of underwriters sit on healthy underwriting surpluses,” stated Ben Abraham, head of the marine division of Willis.

The coverages provided by IG members include personal injury to crew and passengers, cargo loss and damage, oil pollution, wreck removal and dock damage.

IG members include American Steamship Owners Mutual Protection and Indemnity Association Inc., the Japan Ship Owners’ Mutual Protection & Indemnity Association and The Swedish Club. Another two (Assuranceforeningen Skuld and Gard AS) are Norwegian. The other eight, which are based in Britain, are: The Britannia Steam Ship Insurance Association Ltd.; The London Steam-Ship Owners’ Mutual Insurance Association Ltd.; The Shipowners’ Mutual Protection & Indemnity Association Ltd.; The Steamship Mutual Underwriting Association (Bermuda) Ltd.; The Standard Club Ltd.; the United Kingdom Mutual Steam Ship Assurance Association Ltd.; The West of England Ship Owners Mutual Insurance Association and The North of England P&I Association Ltd.


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