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Japan Club expresses appreciation for the 2024 Renewal

Naoyuki Moriya, Director/Head of Underwriting Units at Japan P&I Club, has expressed the Club’s “deepest appreciation” to all our Members for the 2024 policy year renewal.

He said that the business environment for the latest renewal was not easy, and remained “uncertain and challenging”.

On a positive note, the Club’s reserve recovered as a result of last year’s 25% unbudgeted supplementary calls for 2020 and 2021 policy years for ocean-going owners’ entries.

“However, while the underwriting balance is being restored, premium levels are still inadequate. There are continued inflationary pressures on claims costs, and reinsurance costs remain high”, said Moriya. Japan Club asked for a 7.5% general increase for ocean-going owners’ entries and a 10% general increase for Naiko Class entries (Japanese coastal vessels). This was the fifth consecutive year of price increases for ocean-going owners’ entries and the third for Naiko Class. “We are fully aware that this was a heavy burden for all of our Members”, said Moriya.

The Club said that, despite these circumstances, most Members renewed their contracts with the Association. “While we have lost some contracts, we have also welcomed new Members in both Naiko Class and ocean-going owners’ entries”, he said.

Japan Club started the policy year 2024 (which began on February 20th) with 1,929 vessels (85.6m tons) of ocean-going vessels and 1,673 vessels (2.5m tons) of Naiko Class.

The numbers reported for this policy year represented a small drop from the 90m gt total for 2023, but Japan Club has been seeing a slow but steady decline since 2020, when it insured just shy of 100m gt in total.

The distribution for 2023 in terns of gt is 49.4% bulk carriers, 17,5% container ships, 14% oil tankers, 8.1% car carriers, 7.4% LPG & LNG tankers, 2.2% general cargo ships, and 1.4% others.