Shipowners face another year of swelling insurance costs. North P&I Club is the latest club to come in with a 10% general increase announcement for 2023/24, with its merger partner Standard announcing the same 10% as has Skuld and the West of England. The news follows on from hefty rises – averaging 12.5% – announced this time last year.
Double-digit rises are far above a normal annual raise; typically a 5% increase would be considered a large call in years gone by.
In a release issued on Friday, North cited “swirling economic uncertainty and mounting inflationary pressures” for its decision to hike premiums by another 10%.
“We can only reasonably conclude that we are currently in the eye of the storm, with the traditional drivers of claims costs – rapidly rising inflation, commodity and shipping indices – all pointing to a more turbulent future,” commented James Tyrrell, chair of North.
Earlier this month the American Club was forced to call for a 30% supplementary call on its members, citing inflation and the lingering effects of covid. The American Club has also said it will ask members for an increase in premiums of “at least” 10%.
