London: The fixed premium P&I market will secure a double-digit share of the P&I market in the near future, argues David Skinner, managing director of DGS Marine Group, in a wide ranging interview with Maritime CEO today.
“The fixed premium P&I market has strengthened steadily in terms of the number of vessels and total tonnage in recent years and will continue to evolve as this growing segment re-shapes the market environment,” says Skinner.
Tough economic circumstances have meant that owners are justifiably trying to secure the very best deal for their P&I insurance.
An increasingly popular way to do this, according to Skinner, is to use fixed premium P&I to tailor an owner’s cover to the specific needs of each of their vessels. For example, if an owner does not require all named perils normally included within P&I cover, DGS can reduce their premiums by providing only what they need.
The world of P&I is already undergoing enormous change with news that the UK and Britannia clubs are pursuing a merger. More mergers are likely, reckons Skinner.
“It would not be a surprise if the merger of the Britannia and UK P&I clubs led to further mergers and consolidation in the sector,” he tells Maritime CEO. However, he says the jury is out on whether this will be good news for owners, as he questions how less competition will lead to lower costs.