West of England Club is to impose a 2.5% general increase in the P&I Class at the 2020 renewal, while keeping FD&D general increase to 0%. There will be no change to general deductible levels.
CEO Tom Bowsher said that it had become clear that premium levels had been “steadily eroded to a point where they are no longer sustainable and do not adequately cover expected claims costs”.
He also noted that a higher than expected cost of other Clubs’ Pool claims in the past two years has been evident.
Over the past few years the Club had increasingly relied on investment returns to subsidize underwriting deficits, and the Board had therefore set general renewal terms to strengthen premium rates “in order to reduce the current imbalance between premium and claims”.
Bowsher also said that a “firm” approach would be taken to renewal discussions on individual rates affected by claims history or changes in potential risk.
For Class 1 (P&I) Owned, a 2.5% standard surcharge has been set to apply to the mutual call rate. Deductibles will be reviewed on an individual basis to reflect record and any changes in risk and exposure. A release call of 15% will apply to the mutual call rate.
For Class 2 (FD&D) Owned, a nil standard surcharge has been set to apply to all mutual rates. A release call of 15% shall apply to the mutual call rate.
For Class 1 (P&I) and Class 2 (FD&D) Charterers Cover a nil standard surcharge has been set.