Japan Club reports increase in tonnage despite premium increase

Japan Club entered the 2020/21 Policy Year beginning February 20th 2020 with 2,300 vessels / 96.2m tons of ocean-going vessels – up by 3.4 m tons year on year. It also had 1,887 vessels / 2.6 m tons of Japanese coastal vessels, up by about 30,000 tons year on year.

Hiroaki Sawabe, Executive Director said that in the 2019 Policy Year the Association received more large claims than usual for ocean-going vessels and the loss record worsened significantly. Neither was the loss record good for Japanese coastal vessels, although the coastal vessel loss record showed a slight year on year improvement.

Sawabi said that the P&I insurance market in general continued to see an upward trend in large claims, continuing from the 2018 policy year. “Given the claims trend as described above and having considered the various factors essential for the management of the Association, such as its Members’ business environment and ensuring the soundness of its income and expenditure, the Association asked ocean-going vessels Members for a 7.5% general increase in premiums for the 2020 policy year. There was no general increase in premiums for Japanese coastal vessels for the 2020 policy year”.

Ship type tonnage %
Bulk Carriers 53.0%
Tankers 20.1%
Container Ships 14.5%
Car Carriers 8.2%
LPG, LNG Tankers 2.1%
General Cargo Ships 0.5%
Others 1.6%

https://www.piclub.or.jp/attachment/insurance_guidebooks/newsletter/Japan_P&I_Newsletter_No.52.pdf?20200413093340