Best's Market Segment Report: P&I Clubs Improve Underwriting Results but Further General Increases Needed to Keep Up With Inflation
Despite a relatively benign year for pool claims in 2023, Protection and Indemnity (P&I) clubs will seek further price improvements at the February 2024 renewal, to keep up with claims inflation, according to a new report from AM Best.
The Best's Market Segment Report, "P&I Clubs: Improving Underwriting Results but Further General Increases Needed to Keep Up With Inflation," notes the general increases announced by P&I Clubs for 2024 are slightly below those of the previous year (when some of the clubs applied increases up to 10%). AM Best considers the level of general increases necessary for clubs to maintain breakeven underwriting results in the face of inflationary economic conditions and the potential for a worse pool year to emerge in the future.
AM Best's report also notes that the International Group of P&I Clubs renewed its reinsurance programme at a lower price ad without wholesale cyber and pandemic exclusions being imposed by its reinsurers.
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