London P&I Club expects more large claims

International

Marine liability insurance mutual, London P&I Club has authorised a general increase in its shipowner members’ subscription payments for the forthcoming 2008/2009 policy year. The Club noted that a higher-than-budgeted incidence of large claims in the 2006/2007 policy year had brought about a 30% rise in the overall cost of such claims net of associated International Group Pool and other reinsurance recoveries. The International Group, which consists of 13 P&I Clubs providing 90% of global marine indemnity coverage, is the biggest industry grouping. Although the number of large claims incurred to date in the current year by the London Club itself had returned to expected levels, the Club noted, there was “overwhelming” evidence from across the industry that both the frequency and severity of large P&I claims were on the increase.