Standard Club sets 7.5% general increase for Strike & Delay Class

Standard Club said that its Strike & Delay class committee had reviewed the financial position of the class and the requirements for renewal at February 20th 2022. It has decided to set a general increase of 7.5% for the 2022/23 policy year.

The committee said that the risk environment for 2021/22 was reviewed by the committee and was considered volatile for the foreseeable future. It said that the ongoing impact of the Covid-19 pandemic on economies, supply chains and world trade would exacerbate this unpredictability.

While extreme weather conditions would continue to cause major disruption in key locations, more isolated risks such as the blockage of major trading routes, fires at ports and terminals, terrorism and cyber-attacks were on the increase. Higher daily insured sums resulting from the buoyant dry freight markets had increased this exposure.

The Club said that premium income for the 2021/22 year was ahead of projections, driven by new business growth and higher daily insured sums as a result of improved earnings, particularly in the dry bulk market.

Claims levels were reflecting this trend, although they remained in line with expectations.

The defensively positioned investment portfolio was projected to make a positive, albeit modest, contribution to income. No call was expected in addition to Estimated Total Premium (ETP) for all open policy years and release call percentages were maintained at 20% of and in addition to ETP.