London: The outlook for the P&I Industry and for those buying P&I insurance is encouraging, says Simon Swallow, a director at the Shipowners’ Club.
“There is evidence that the number of claims are reducing yet the cost of claims is increasing,” Swallow says.
There has never been a time when so much P&I choice has been available, Swallow says. This can only help to improve the product offering particularly from the 13 P&I Clubs which make up the International Group, he reckons. “The Clubs are facing increased competition and are consequently looking to diversify and improve their product range,” he notes.
Amongst this expanded competition are a number of new, fixed premium commercial players, many of which are underwriting through agency agreements. This is obviously putting pressure on premiums for existing cover but could, Swallow warns, potentially also impact the P&I sector’s reputation when high profile incidents occur.
Other major concerns that Swallow points out relate to wreck removal and environmental issues. Costs are increasing as a consequence of countries increasingly insisting on wrecks being removed from their shores. In addition of major concern are the increased burden on compulsory insurance and the trend towards direct action.
As with so much of shipping it is in Asia that Shipowners and other P&I Clubs are seeing the greatest growth in business.
“The Asian market continues to offer the greatest opportunity currently for the industry. Emerging markets such as Myanmar, Vietnam and of course China are producing potential opportunities for the P&I sector,” says Swallow.
Shipowners has offices in London, Singapore, Hong Kong and Luxembourg. [20/08/14]