P&I CLUB GENERAL INCREASES ‘UNNECESSARY'

Protection and indemnity (P&I) clubs do not need general increases in the coming renewal round and should price based on owners’ individual loss records instead, according to the managing director of the marine and cargo division at Marsh JLT Specialty. Mark Cracknell spoke after West of England became the first International Group affiliate to unveil its negotiating stance for the next 2021/22 renewal round, announcing a 15% general increase that ranks among the highest seen in the International Group in recent years. Many are inevitably wondering whether that represents a bellwether for the rest of the pack, which will go public one by one over the coming weeks. Given almost all International Group entities are reporting high combined ratios, several topping 130%, the widespread expectation is for further pain after the high single-digit price hikes seen over the past two rounds. But Cracknell told a Lloyd’s List marine insurance podcast he will be setting out his anti-general increase position in full in a forthcoming report from Marsh, which will be published within days.