London leads liability, Asia yet to respond

22 February 2010

Posted in Blog

Tagged: Asia, liabilities, Lloyd's, London, underwriting

There is no doubt that Asia is a highly competitive market for traditional marine hull insurance. We have mentioned in previous blogs how shipowners are in a good position to secure well-rated insurance from competitive Asian insurers as a way to offset the rises being sought in London. However, in terms of marine [...]

Norwegian Plan updated for 2010

15 February 2010

Posted in Blog

Tagged: P&I, piracy, renewal, shipowner

The Nordic Association of Marine Insurers (Cefor) has now released the 2010 version of the Norwegian Marine Insurance Plan (NMIP) updating their 2007 version. Whilst there would not appear to be any fundamental changes, owners may wish to be aware of the following. Cefor has sought to clarify the relationship between the NMIP and the [...]

Asian capacity allows shipowners to fight London rises

1 February 2010

Posted in Blog

Tagged: Asia, capacity, London, premiums, shipowner

The recent renewal season highlighted how international insurance markets and shipowners were handling the changing economic conditions, with the London market seeking rises, whilst shipowners pressed for lower premiums, providing opportunities for other markets, such as Asia. The global downturn’s effect on trade has meant shipowners are facing further pressures to reduce costs, including reducing their [...]

London Steamship calling for 5% General Increase

31 December 2009

Posted in Blog

Tagged: P&I

The Club’s Committee has decided to apply a 5% increase on 2009 Estimated Total Cost for the 2010/2011 Policy year, prior to further adjustments based upon individual records. Any adjustment to the reinsurance cost of the Club will also be applied to Members. The Release call rate is set at 15% of Advance Call. Additionally, all deductibles [...]

West of England P&I Club sets General Increase for 2010

31 December 2009

Posted in Blog

Tagged: P&I

The board of the West of England P&I Club has decided to increase Members’ advance calls by no less than 5% for 2010 P&I renewals, and will seek specific increases from those members with adverse claims records. In addition the reinsurance costs will be payable at its actual cost. The forecast additional call for 2010 is [...]

Skuld applies 5% General Increase for 2010

31 December 2009

Posted in Blog

Tagged: P&I

Renewals on all mutual classes will be subject to a general increase of 5% for 2010, although Members will be individually rated based on their loss record and risk exposure. At the same time, the Club is seeking an increase in deductibles of a minimum USD2,500. Any changes in the Club’s reinsurance costs will be applied to [...]

Marine consequential loss insurance gaining importance in difficult times

15 December 2009

Posted in Blog

Tagged: Advanced Loss of Profits, Cargo, consequential loss, Delay in Start Up, losses, project cargo

Many infrastructure projects require that often expensive and sophisticated equipment must be installed and operating to capacity soon after it arrives on site. Many major infrastructure and mining operations involve the import of key equipment valued at hundreds of millions of dollars. These items are ordered to arrive on site on specific dates in order [...]

The Japan Ship Owners’ Mutual P&I club requests 12.5% increase

3 December 2009

Posted in Blog

Tagged: P&I

The Board of Directors at The Japan Ship Owners’ Mutual P&I Association has decided to implement a 12.5% increase on the P&I advance calls rates, with any adjustment in the cost of the International Group reinsurance program to be added. Individual member’s loss record will be reviewed for renewal in light of the above general [...]

American Club announces nil General Increase for 2010

23 November 2009

Posted in Blog

The board of the American Club has decided no increases in advance calls for 2010 will be sought for P&I and FDD mutual entries, whilst the supplementary call forecast will be increased slightly from the current 20% of advance calls for 2009 to 25% of advance calls for 2010. Any additional costs of the Club’s reinsurance [...]

North of England calls for General Increase for 2010

23 November 2009

Posted in Blog

Tagged: P&I

The Directors have decided to apply a General Increase of 5% to expiring premium rates, and Members with adverse loss records should expect a higher increase. In addition, any increase in the cost of the International Group Excess Loss Reinsurance Programme will also be applied to Members. All deductibles for P&I Risks will rise by 10% [...]

Britannia calls for 5% General Increase for 2010

23 November 2009

Posted in Blog

The Committee has decided to increase the existing advance call rates by 5% for P&I entries and in addition the Members’ individual rates will be adjusted based on the cost of the International group Reinsurance Programme, as well as their individual claims’ records. The deferred call for 2010 is 40%. The Club will also continue the [...]

Shipowners P&I Club to pass on increased reinsurance costs to pooled members

11 November 2009

Posted in Blog

Further to the Club’s reinsurance costs rising over the past 3 years, particularly in relation to the Club’s contributions to Pool claims, the Directors have decided that Members’ P&I premium should be increased at 2010 renewal by 5%. This increase will only apply to the vessels declared to the Pool, i.e. those with a limit [...]

The Standard P&I Club announces 2010 General Increase

11 November 2009

Posted in Blog

The Standard P&I Club board will be requiring a 3% general increase in premium rates for 2010 P&I renewal, whilst members with adverse records should expect their premiums to be further increased. Rates will also be adjusted following any increase in the International Group reinsurance program costs. The managers have also received instructions to increase deductibles [...]

Steamship Mutual sets general increase for 2010 P&I renewal

11 November 2009

Posted in Blog

The Club’s directors have set the standard increase for P&I at 5% prior to assessment of individual Member’s profile. Any adjustment in reinsurance costs, whether upwards or downwards, will also be passed on to the Members. No general increase will be sought for FD&D. It is anticipated that there will be no further call to the [...]

UK P&I Club sets General Increase for 2010

11 November 2009

Posted in Blog

The UK P&I Club has decided that a 5% increase in the premium rating will be sought from all Members (mutual and fixed premium) for the 2010 policy year, plus any increase in the costs of the International Group reinsurance premium for the mutual Members. As far as deductibles are concerned, although a majority of Members [...]

Gard announces no general increase for 2010

30 October 2009

Posted in Blog

Tagged: P&I, premiums, shipping

The Board of Gard has decided that no general premium increase will be required for mutual and fixed premium P&I entries for the 2010 year.  This is not to say that Gard will not be seeking increases, simply that those increases will be dependant upon each individual member’s exposure and loss record.  In addition, any [...]

The London P&I Club changes arrangements for collection of calls

28 October 2009

Posted in Blog

Tagged: P&I

The London Club has issued notice that, from 2010, the Club will quote on the basis of an Annual Call, which will include both the Advanced and Deferred Call. The Club will continue to collect over a deferred period, likely to be 30% in March 2010, 30% in July 2010 and 40% in December 2010 and [...]

West of England announces results of mid-year review

28 October 2009

Posted in Blog

Tagged: P&I

The West of England has confirmed that the 2007/8 year will now be closed without any further Calls applying. In addition, the Release Call for the 2007/8 year will be reduced from 30% to 15%. The 2008/9 year’s 45% Additional Call remains in place, due to be debited in January and August 2010, whilst the Club [...]

Britannia P&I Club announces 2010 general increase

28 October 2009

Posted in Blog

Tagged: P&I

The Britannia P&I Club has announced they will be seeking an Advanced Call increase of 5% for the 2010/2011 year with Members being advised to budget for a 40% Deferred Call. The increase in Advanced Call is before any changes in the International Group Reinsurance rating and individual Member’s loss records. In addition, the 2006/7 year [...]

Rotterdam Rules

5 October 2009

Posted in Blog

Tagged: Cargo, contracts of carriage, liabilities, Rotterdam Rules, shippers, trade

Recently 16 states signed up to the new Rotterdam Rules which concern contracts of carriage wholly or partly by sea. The Rules have been designed to regulate marine cargo liabilities internationally and may ultimately replace the Hague Rules, the Hague-Visby Rules and the Hamburg rules in those countries that are signatories to those conventions. The [...]

P&I Clubs report heavy losses from investments

11 September 2009

Posted in Blog

Tagged: P&I, underwriting

Back in April we wrote that shipowners should consider their P&I club’s investment portfolio carefully; the recession has resulted in falling equity markets and therefore lower investment incomes for P&I Clubs who invested heavily in the markets. The result of this meant we were likely to see a more technical approach to underwriting and rising [...]

P&I Clubs report heavy losses from investments

11 September 2009

Posted in Blog

Tagged: P&I, premiums, underwriting

Back in April we wrote that shipowners should consider their P&I club’s investment portfolio carefully; the recession has resulted in falling equity markets and therefore lower investment incomes for P&I Clubs who invested heavily in the markets. The result of this meant we were likely to see a more technical approach to underwriting and rising premiums [...]

Sydney yacht fire raises questions of marina operator’s liability

3 August 2009

Posted in Blog

Tagged: liabilities, losses, marina, yacht

The recent fire in Pittwater near Sydney, Australia, in which six yachts were destroyed by fire and parts of a marina damaged, has highlighted the importance of marinas and shiprepairers being appropriately and sufficiently insured for the work being undertaken. It is believed that the source of the fire came from the equipment [...]

Falling ship values highlights importance of value adjustment rates

3 August 2009

Posted in Blog

Tagged: insurers, premiums, risk, shipowner, shipping, value adjustment rate

As shipowners will know all too well, ship values have continued to fall; at FP Marine Risks we have seen some reductions of up to 50% in recent months. However, the consequent reduction in premium varies widely among insurers and it is important that shipowners are aware of the basis of that variation in premium if [...]

More shipowners enjoying benefits of Asian placement in these difficult times

30 June 2009

Posted in Blog

Tagged: Asia, capacity, insurers, shipowner, shipping, underwriting

Shipowners with smaller fleets, smaller vessels or lower values can still benefit from an Asian insurance placement as world markets become more competitive. Some believe that Asian-based underwriters are dedicated to the Asian-based shipowning market (putting aside Japan and Korea’s involvement in the large fleets) to the exclusion of non-Asian tonnage. Whilst this may have [...]

“Swine flu” cruise ship raises questions of insurance

13 June 2009

Posted in Blog

Tagged: cruise, swine flu, trade disruption

At the end of May 2009, Pacific Dawn, a P&O cruise ship that operates out of Australia, had to change its itinerary after three crew members were found to have the H1N1 virus (swine flu).  The individuals were put into isolation and treated, but in order to minimise the spread of the disease, the cruise [...]

World marine insurance markets remaining soft despite recession

1 June 2009

Posted in Blog

Tagged: IUMI, premiums, recession, soft market

In February, we wrote in this blog about the stark forecasts coming out of IUMI (International Union of Marine Insurance) regarding the global recession and the effects it was likely to have on pricing levels. The report was bleak, with slower demand and falling freight rates forcing shipowners to find efficiencies across the board, and insurers [...]

Lay Ups in Singapore – no sign of increasing premiums

28 May 2009

Posted in Blog

Tagged: P&I, ports and terminals, premiums, shipowner

Earlier this year, the American P&I Club issued a members alert regarding lay ups in Singapore. It refers to a general indication that Singapore’s port has become congested with laid up vessels and that members should be aware of an increased risk of collision. It appears that most claims have resulted from mis-calculating the [...]

Maersk Alabama – existing policies may not have responded to cover ransom

15 April 2009

Posted in Blog

Tagged: General Average, Gulf of Aden, Hull and Machinery, kidnap & ransom, Maersk Alabama, P&I, piracy

The Maersk Alabama made the news for many reasons after it was attacked by pirates recently, not least because it was the first American-flagged vessel to be hijacked in the Gulf of Aden. The crew was able to recapture their vessel, but the captain was taken as sole hostage on a lifeboat at sea. Uniquely, there was [...]

Owners recommended to consider Club’s investment portfolios

3 April 2009

Posted in Blog

Tagged: P&I, shipowner, underwriting

While economic times were good, Protection and Indemnity Clubs were able to use positive investment income, mostly drawn from exposure to equity markets, to reduce their calls to members whilst simultaneously growing their free reserves. The income allowed shipowners to enjoy reduced premiums even when there was an increase in claims activity, because of the [...]

Container Lessors insurance available through new markets

18 March 2009

Posted in Blog

Tagged: container leasing, credit insurance, trade

In the face of mounting losses, insurers in the Marine market have recently been withdrawing insurance that protects container leasing companies against the insolvency or default of their shipping company clients. However, for several years FP Marine Risks has been successfully arranging an alternative product that meets the needs of container lessors whilst [...]

Charterers feeling the crunch risking all to keep costs down

18 March 2009

Posted in Blog

Tagged: charterer, legal costs, liabilities, losses

Many charterers on time charter trip (TCT), short term time or voyage charters are seeing a downturn in volumes, freight rates and consequently profits.  Costs are being squeezed all the way down the chain and charterers are looking to find ways of reducing their expenses, but if their insurance seems a tempting cost to sacrifice, [...]

New ICC Clauses making it clearer for cargo clients

17 March 2009

Posted in Blog

Tagged: Cargo, ICC Clauses

At the beginning of the year, the new ICC Clauses became available to the Market after a two year consultation. The overall result has been to create clearer policies that are more favourable to the Assured. In the Opinions section of this website, we have provided a summary of some of the more [...]

Currency fluctuations creating inadequate marine insured values

9 March 2009

Posted in Blog

Tagged: currency exchange rates, exporters, importers, recession, shipowners

The world economic crisis is playing havoc with currency exchange rates. The implications of significant fluctuations can be serious, particularly for shipowners, importers and exporters because their marine insurance may no longer cover them for the full amount in the case of loss or damage. A recent Australian marine insurance claim involved the total [...]

Lay up returns or cancelling returns only on Hull and Machinery policies

2 March 2009

Posted in Blog

Tagged: Hull and Machinery, lay up, shipowner, shipping

As freight rates and trade volumes have dropped, an increased number of vessels are being laid-up whilst owners reduce costs and sit out the current downturn. Some estimates suggest this is affecting up 9% of the world container fleet. So, what’s the most premium efficient way to manage a lay-up? The Institute Time Clauses – Hulls [...]

World insurance markets not yet hardening in response to the global recession

19 February 2009

Posted in Blog

Tagged: charterer, claims, hard market, IUMI, recession, shipowner

In January, IUMI (International Union of Marine Insurance), warned of bleak times ahead as the industry prepared to face the impact of a global slowdown. Slowing demand and lower freight rates are forcing shipowners and charterers to cut costs and find efficiencies. Inevitably, marine insurers will feel the effects through increasing claims, and [...]

Claims expected to rise as recession deepens

19 February 2009

Posted in Blog

Tagged: Cargo, claims, commodity prices, recession, shippers

We have not witnessed any significant increase in the number of claims since the first signs of a recession last year. However, it is commonly the case that claims do rise in slowing economies and we expect to see that trend returning this year. Lowering worldwide consumer demand has already heavily impacted commodity prices. Profit margins [...]

Negotiations arise when changing technical management

13 February 2009

Posted in Blog

Tagged: shipowner, shipping, technical management

As some insurers become more conservative in their approach to risks, what might have been a simple request to agree to a change of technical management is fast becoming a more difficult negotiation. One of the aspects an underwriter will consider when rating or accepting a risk is the identity of the technical manager and their [...]

New shipping regulations in the US

9 February 2009

Posted in Blog

Tagged: Cargo, Homeland Security, importers, regulation

The Department of Homeland Security (DHS) has recently implemented new regulations for cargo security that will affect companies involved in the importation of products into the US. These regulations have been designed to help identify high-risk shipments as early as possible. Known as the Importer Security Filing and Additional Carrier Requirements Regulation, it requires marine [...]

New two-way shipping lane in Gulf of Aden

30 January 2009

Posted in Blog

Tagged: Gulf of Aden, piracy

The London-based International Maritime Employer’s Committee announced that on 1 February 2009 a two-way system will come into force in the Gulf of Aden. This will apply specifically to the “High Risk Area” security corridor. All vessels will be directed to transit the Gulf via the East and West bound lanes, in response [...]

Insurance premiums expected to rise on back of piracy

29 January 2009

Posted in Blog

Tagged: charterer, Gulf of Aden, Hull and Machinery, piracy, shipowner, Somalia, war

There is an expectation that insurance premiums are due to rise as marine piracy continues to affect major shipping routes. Whilst the increase in naval presence has helped lower the rate of attacks, there have been a number of high profile pirate attacks on vessels transiting the Gulf of Aden which have been settled via [...]