Protection and indemnity (P&I) clubs will seek significant price improvements at the February 2022 renewal in response to deteriorating claims experience and the expectations of returning a combined underwriting loss for the fifth consecutive year, according to a new AM Best report.
A new Best's Market Segment Report, "P&I Clubs in 2022 An Even More Challenging Year," notes that the majority of P&I clubs have announced general increases ranging between 5% and 15% ahead of the renewal date for ship-owners. However, AM Best expects that further rate adjustments will be needed to reach price adequacy, given the underwriting loss expected for 2021/22.
The report reveals that the P&I clubs entered the 2021/22 year with a record level of free reserves, reflecting the overall positive operating result for the previous year. In general, regulatory solvency ratios were strong and the majority of clubs had prudent, albeit reduced, capital buffers. However, AM Best expects the clubs to report an overall decrease in free reserves during fiscal-year 2021/22, with technical losses likely to be only partially offset by investment earnings.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=317498.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220215005921/en/
Contacts:
Jose Berenguer
Financial Analyst
+31 20 308 5429
jose.berenguer@ambest.com
Mathilde Jakobsen
Director, Analytics
+31 20 308 5427
mathilde.jakobsen@ambest.com
Richard Banks
Director, Industry Research EMEA
+44 20 7397 0322
richard.banks@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
