The mutual insurance association Shipowners’ Club said last week that no General Increase would be applied for 2025.
The Shipowners’ Club board met last week to determine whether the Club should seek a General Increase for the 2025 policy year, commencing 20 February 2025.
Given the margin between premium income and claims costs, the board resolved that no General Increase would be applied for 2025, consistent with the Club’s long-standing philosophy that increases in premium would only be requested when absolutely required.
“However, there remain some small areas of the Club’s business that will require further review, and communication will be made on the Club’s underwriting approach in due course,” the Shipowners’ Club statement reads.
At the half year stage, the Club reported a combined ratio of 95.8%, with an underwriting surplus of US$5.4m, compared with 98.5% and US$1.8m at the same stage of the prior year.
When the board met on November 27 it was noted that the Club Underwriting result remained within budget. Whilst claims to the 2023 and 2024 years had been running at higher levels, the Club had continued to see prior year claim improvement.
Claims releases on back years, and favourable income development were drivers for the lower combined ratio reported in the Club’s half year report.
Whilst the Club’s own claims and claims to the International Group Pool had both increased since June this would not be sufficient to significantly impact the combined ratio and this is expected to remain under 100% at year end, the Shipowners’ Club said in its statement.
In the yacht sector, the Shipowners’ Club has again seen ongoing increases in the overall cost of claims, partly driven by fires, a small number of claims in the US, but also by challenges for members in securing the services of good quality crew.
