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Protection and Indemnity (P&I) Club Renewal Update 2023

The Marsh Specialty protection and indemnity (P&I) renewal tracker provides live information and analysis about the P&I club renewal policies published so far and details of when to expect to hear from those yet to announce.

01/19/2023 · 6 minute read

Our latest P&I Club Renewal Update 2023 provides information on P&I club renewal policies, supplementary call history, general increase history, International Group reinsurance rates, and P&I release calls.

P&I Club Renewal 2023

General increase update

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P&I Renewal Tracker

Date of committee meeting General increase Percentage general increase P&I Percentage general increase FD&D* Deductible changes Comments Link to P&I club announcement
American 16th & 17th Nov N/A N/A N/A All deductibles from US$ 10,000 to US$ 50,000 will be increased by 10%, and any deductible below US$10,000 will be increased by US$ 1,000. While no General Increase has been set, an increase of at least 10% on expiring rates has been mandated. Further adjustments will be made depending on risk and existing terms of entry. A supplementary call of 30% has been levied against the 2021 Policy Year which will be debited in two equal instalments on 20th October 2023 and 20th January 2024. American's announcement
Britannia 25th Oct N/A N/A N/A New minimum P&I deductibles:
crew US$7,000
cargo US$19,500
all other claims US$13,500.		 Britannia has no general increase but a “target” overall increase of 10% for P&I and 15% for FD&D.  In practice, at prior renewals, Britannia has sought to apply its target increases to all members regardless of record, making it difficult to see any difference between a general increase and a target increase. No Capital Distribution has been announced. Britannia's announcement
Gard 3rd Nov N/A N/A N/A N/A Members should expect an increase of between 5-7% with an acceptable record. Owners’ General Discount of 5% will be given on the agreed ETC for the 2023 policy year. As with Britannia, where such targets are applied to members without reference to individual loss records, they might just as well be termed “General Increase
Japan 28th Nov YES 10.00% 10.00% N/A Japan Club have announced a 10% general increase for P&I and FDD premiums. In addition Japan Club are to consider an unbudgeted supplementary call of 25% on both the 2020 and 2021 policy years. The final decision on the Supplementary Calls will be made in February 2023. From 20th February 2023 P&I and FDD Premiums will be paid under a Mutual Premium system rather than Advance Call. Japan's announcement
London 18th Oct YES 0.00% 0.00% N/A No general increase is set and renewal terms will be based on individual Member loss records and risk profiles incorporating the anticipated impact of inflation on future claims for P&I and FD&D. London's announcement
North 22nd Nov YES 10.00% 15.00% All crew and people related claim deductibles below US$ 50,000 will be increased by a minimum of US$ 2,500.
All cargo and other claims deductibles will be increased by a minimum of US$ 1,000.
The FD&D deductible remains at 25% with a minimum of US$ 10,000 per claim, but the maximum limit of US$150,000 per claim has been removed.		 All P&I and FD&D premiums and terms will be robustly reviewed and adjusted to ensure they reflect performance and exposure. North's announcement
Shipowners’ 31st Oct YES 0.00% 0.00% All deductibles under US$ 50,000 will be increased by 10% but subject to a minimum monetary increase of US$ 500. 10% Increase in premiums will be applied to Yachts. Members operating Dry Cargo vessels will also be subject to increases depending on claims record. Shipowners' announcement
Skuld 9th Nov N/A N/A N/A N/A It will be necessary to achieve an overall ETC adjustment of 10% across their Mutual product. P&I claims will now be abated at US$ 3 million and all Charterers and P&I Fixed records will now include costs of running the business. Skuld's announcement
Standard 14th Oct YES 10.00% 10.00% The board is determined to increase all deductibles by 10%, subject to a minimum increase of US$ 2,000 for crew and cargo claims. No change to FDD deductibles. Additional premium adjustments will be required should the member prefer to maintain existing deductibles. The board has decided to apply a general increase of 10% to all members P&I and FDD premium. Additional contributions will be sought from members with adverse records. NorthStandard merger will commence with effect from the 20th February 2023. Standard's announcement
Steamship 25 Oct YES 7.50% 7.50% All P&I deductibles under US$50,000 to be increased by 10% Managers have been instructed to correct individual Member premium ratings where necessary. Steamship's announcement
Swedish 8th Dec YES 10.00% 15.00% Club minimum deductibles as follows;
- Cargo US$ 15,000
- Crew US$ 10,000
- Third Party US$ 25,000
- Other liabilities US$ 10,000 Deductibles already above this minimum are to be increased by 10%.		 The P&I General Increase and/or adjustment will be applied to the net 2022/23 premium (gross premium less commission if applicable). Once the excess reinsurance cost for 2023/2024 are known, the old excess reinsurance cost will be taken out of the new net premium and replaced with the new cost of the excess reinsurance applicable for policy year 2023/2024. Any commission will then be calculated/added and the new gross premium for 2023 will be confirmed.
UK 7th Nov YES 10.00%   Remain unchanged at US$ 15,000 per event including fees and expenses.
The Club may propose higher deductibles as part of the renewal terms for Members with adverse records.		 Members with adverse records should anticipate higher increases.
For the 2023 policy year, the mutual premium will be payable in three instalments during the policy year. Previously, mutual premium has been payable in four instalments.		 UK's announcement
UK Defence Club 17th Nov YES   5.00% N/A The UK Defence Club have confirmed that the 5% General Increase is a minimum premium increase across the Membership for the 2023/24 policy year. Increases will be in excess of this where Shipowners have adverse loss records. Shipowners that enter their full fleet with the UK Defence Club will receive a 2.5% continuity credit to their 2023/24 premium. UK Defence Club's announcement
West 16th Nov YES 10.00% 15.00% No change will be made to the Rules Deductible for P&I entries however all other deductibles will be increased by 10% and a minimum increase of US$2,500 will be applied.
For FD&D entries no change will be made to the one fourth deductible formula.		 A 10% standard surcharge has been set to apply to all mutual premium rates, rates will be adjusted further to reflect members with adverse records. For both P&I /FD&D an estimated total mutual call to be payable in 4 equal instalments, each of 25% of the total mutual call. West's announcement
Source: Marsh Specialty
* FD&D is freight, demurrage and defence

To discuss further details of a club’s policy, or other P&I club issues, please contact your Marsh Specialty advisor.

2022 P&I Club Market Bulletin

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