We are pleased to launch our Protection and Indemnity Clubs: Financial Review 2020. This report, provides extensive financial analysis of the International Group (IG) of P&I clubs.
For the 2019/20 financial year, the P&I clubs recorded an average combined ratio — the ratio of incurred claims and expenses to earned premiums — of 114%, ranging between 99% and 143%.
On the face of it, there is a strong argument that P&I claims are significantly outrunning premiums.
Will this lead to clubs raising premiums for ship-owners? We examine the factors driving P&I club underwriting models, including claims and premium trends and the significance of surplus capital in a unique insurance market. We put the case against the need for general P&I premium increases.
The report covers:
- The recent performance of the clubs and the outlook for renewal negotiations.
- A consolidated analysis of the clubs by key performance indicators.
- Individual profiles of each club, with extensive financial analysis.
- A review on Solvency II reporting.
Key highlights: