Shipowners have received confirmation that next year will be an expensive one in terms of cover for their vessels.
The UK P&I Club has set a general increase of 12.5% on all mutual premium rates for the 2022 renewal in order, it said in a release, to correct its underwriting deficit. Members with adverse records should anticipate higher increases, the club added.
Earlier this month the West of England P&I Club became the first club to indicate its 2022 plans, calling for a 15% hike in rates. Double digit rises are far above a normal annual raise, typically a 5% increase would be considered a large call in years gone by.
“Record pool costs and Covid-19 related liabilities mean that a corrective action is now necessary,” the West stated in a note to clients earlier this month.
Also spooking owners; the London Club came out this month with a supplementary call for members covering the last three years. The additional hike works at 25% over original budgets with the struggling insurance firm citing the “acute softness” in rating levels in the P&I sector as well as the high level of claims this year and an increase in the cost of claims involving Covid-19 as reasons for the additional hikes.