Despite a relatively benign year for pool claims in 2023, Protection and Indemnity (P&I) clubs will seek further price improvements at the February 2024 renewal, to keep up with claims inflation, according to a new report from AM Best.
The Best’s Market Segment Report, “P&I Clubs: Improving Underwriting Results but Further General Increases Needed to Keep Up With Inflation,” notes the general increases announced by P&I Clubs for 2024 are slightly below those of the previous year (when some of the clubs applied increases up to 10%). AM Best considers the level of general increases necessary for clubs to maintain breakeven underwriting results in the face of inflationary economic conditions and the potential for a worse pool year to emerge in the future.
AM Best’s report also notes that the International Group of P&I Clubs renewed its reinsurance programme at a lower price and without wholesale cyber and pandemic exclusions being imposed by its reinsurers.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
Source: Hellenic Shipping News
