P&I CLUBS URGED TO HOLD OFF HIKING PREMIUMS

The International Group of P&I clubs has been urged to delay hiking members’ premiums for a year because of the pandemic. London market broker Tysers said there was a “strong argument” that the clubs should “write off 2020 as an exceptional year” and “offer a neutral renewal by deferring any perceived need for corrective action until 2021”. Clubs have struggled with poor underwriting performance recently on the back of a rising number of large claims, posting an average combined ratio of 117% in 2019/20, according to Tysers’ analysis. However, most clubs still managed to produce a surplus thanks to strong investment returns. Tysers also reiterated its view that the number of P&I clubs should be reduced. “We have for many years argued that 13 Clubs is too many and we remain of the view that nine would be more than sufficient," the broker said.