‘P&I insurance renewals – navigating the 20th February 2024 changes’: Marasco Marine

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Anastasios Maraslis, Founder and President of independent marine risks management company Marasco Marine Ltd, offers the following advice on understanding latest industry shifts and how best to navigate the upcoming February 2024 renewals of Protection & Indemnity (P&!) insurance, which he describes as ‘a cornerstone of maritime commerce’:

“The past year has seen significant maritime incidents, including the ongoing impact of the COVID-19 pandemic, influencing the P&I market. These events have led to heightened risk assessments and stricter underwriting policies.

Economic fluctuations play a vital role in insurance premium. The current global economic landscape, marked by inflation and shifting trade patterns, is reshaping P&I premiums. The announced and intendent P&I premium general increase, fluctuates from 5% to 7.5%, depending the Club, followed by some, with an increase on the deductibles, which increase further shipowners/ship managers and operators costs. However last year’s renewals hike in rates helped Clubs improve technical performance in 2023 which is self-evident in 2024, Clubs’ lower appetite for rate increases.

New maritime regulations, aimed at enhancing safety and environmental protection, are affecting P&I policies. Compliance with these regulations is now a critical aspect of obtaining favorable insurance terms.

Technological advancements, like AI and data analytics, are also revolutionising the P&I sector. Insurers are now better equipped to assess risks and tailor policies.
As we move towards the renewal date, it’s essential to reassess your cover needs. Consider changes in your fleet, operational areas, and the nature of your maritime activities.

Different P&I clubs offer varying benefits and specialisations. Research and select a club that aligns with your specific requirements, vessels’ type, size, trade, cargoes carried, etc., each fleet and ship manager is unique. There is no ‘one size fits all’ and besides a Club’s financial strength, a key factor is its reputation for handling claims, the speed of response, the expertise of the claims handlers, and the Club’s record in dispute resolution. Some Clubs offer also risk management services to help members reduce their exposure to claims. Such services may include loss prevention advice, safety audits, and training.

Effective and early negotiation is key to securing favorable terms. Be prepared to discuss your risk management strategies and your fleet loss history.

It’s also important to note that loss prevention measures not only safeguard your operations but also reduce insurance premiums. Implementing robust safety protocols is crucial.

As the renewal date approaches, gather your documentation, claims paid, claims incurred reported and still open, your fleet’s loss history, premium paid, review your current policy, terms/conditions and consult with your broker to ensure a seamless process.

In conclusion, navigating the P&I insurance landscape requires staying informed and proactive. By understanding these key factors, you can secure the best possible cover for your maritime operations, choosing the right partner for you, to protect your exposure to marine liabilities swiftly and efficiently, when is mostly needed. “

More information about Marasco Marine Ltd, its full list of services, unique structure and its Board of Advisors, can be found at www.marasco-marine.com

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