As a mutual insurance association, P&I clubs provide risk pooling, information and representation for members. P&I insurance covers risks that are not typically placed in the traditional insurance market. Typical P&I cover can include a carrier's third-party risks for damage caused to cargo during carriage, war risks, and risks of environmental damage such as oil spills and pollution.
A challenging horizon
Much has been said of applying a general increase as means of blanket raising premiums across all members, regardless of individual account performance. With all the actuarial and modelling skills available, P&I clubs should now be in a position to apply increases that relate to adverse loss records.
Clubs should adopt an analytical approach when seeking increases, rather than a unilateral approach. When working with organizations a more detailed analysis of each member’s risk profile hand-in-hand with the context of club performance and the marketplace is encouraged.
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