“The P&I clubs approached the renewal period with very strong balance sheets,” said Drummond. “In the run up to the renewal period, the clubs announced there would be no general increases, since they were placing their emphasis on assessing the risks that each shipowner brought to the clubs, in order to reduce costs and premiums.”
Drummond also said that the low interest rate environment continues to challenge the clubs, since they are mutuals and have not had to focus on underwriting profitability due to historically good levels of investment income to offset any underwriting deficits. However, Drummond believes that the clubs can overcome this deficiency by, “increasing or introducing minimum deductibles or increasing existing deductibles so that it reduces the level that claims can be made by the policyholders. That is tantamount to increasing rates.”
To read the Best’s Special Report, titled, “Balance Sheets of P&I Clubs Strengthened by Good Recent Performance; Pricing Under Pressure,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=259271.
Recent episodes of A.M.BestTV include:
- Facing Tough Market, Bermuda Insurers and Reinsurers Explore New Paths to Growth, Says A.M. Best Analyst:
Scott Mangan , senior financial analyst,A.M. Best , discusses a recent briefing that reviews market conditions forBermuda -based insurers and reinsurers, including expansions into new coverages and sources of capital: http://www.ambest.com/v.asp?v=bermuda417.
- Ogden Rate Changes Will Hurt Results But Boost Premiums. Says
A.M. Best Analyst:Myles Gould , senior financial analyst,A.M. Best , said recent statistical changes that raise payouts for injury claims in theUnited Kingdom will affect non-life insurers, but are not expected to trigger rating changes: http://www.ambest.com/v.asp?v=ogden417. - Hammering Out the New Risks of Construction: Legal and insurance panelists examine emerging liability issues, such as how new standards are affecting the sector, and where insurers will see the next exposures: http://www.ambest.com/v.asp?v=construction317.
- Willis’ Angelini: Asian Insurers Pursue Mergers &Acquisitions Via Multiple Strategies:
Kevin Angelini , head of strategy,Asia-Pacific , Willis Towers Watson, said insurers inJapan were relatively early to making international acquisitions, but that insurers inChina and elsewhere are pursuing different strategies to acquire companies and capabilities: http://www.ambest.com/v.asp?v=angelini417.
A.M.BestTV covers exclusive
Copyright © 2017 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170417005569/en/
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com
Source:
Month-End Portfolio Data Now Available for Federated Investors’ Closed-End Funds
Global Zinc Citrate Market Report 2017 – Forecasts to 2024 with Regional Outlook, Growth Trends, Key Players & Competitive Strategies – Research and Markets
More Articles