North P&I Club Directors Decide to Keep Rates Unchanged for 2017/18

North P&I Club will keep rates unchanged for both protection and indemnity (P&I) cover and freight demurrage and defence (FD&D) cover in the 2017/18 policy year. The freeze in prices reflects lower than average claims, said North, “as well as the Club’s commitment to help its Members cope with difficult trading conditions.”

North’s chairman Pratap Shirke said that “despite continuing volatility in the bond markets, which has again negatively impacted the Club’s pension scheme, our healthy investment returns and a generally favourable claims experience mean North remains in a strong financial position. As such – and exceptionally in recognition of the difficult trading conditions facing our Members – we have decided not to apply any general premium increases next year.”

North will also be returning 5% of mutual premium in respect of the 2016/17 policy year, via a credit note following renewal, on all mutual owned ships entered in the current 2016/17 Policy Year, that renew in the 2017/18 Policy Year.

Joint managing director Alan Wilson noted that premiums would nevertheless be adjusted to reflect individual Member’s claims performance and exposure, plus any changes in the costing and structure of the International Group of P&I Clubs’ excess-loss reinsurance programme.

Although rates are frozen, deductibles are rising. All cargo deductibles below $25,000 will be increased by at least $2,000 per deductible, while crew and other deductibles will go up by a minimum of $1,000.

Mutual and fixed premiums for North’s FD&D cover will also not be subject to a general increase at the February 2017 renewal and there will be no change to deductibles.