As in recent years, Skuld’s position with regard to General Increases is unique within the IG in that they believe in adjusting each Member’s base premium upon a number of factors rather than a General Increase which is then adjusted for record.  Those factors are as follows:

i.     statistical records taking into account claim costs, types of claim, claims trends as well as claims frequency;

ii.    type and age of vessels and fleet composition/development;

iii.   claims inflation due to increased levels of compensations awarded to claimants and increased legal and expert costs in defending your claims;

iv.   premiums have to be “adjusted accordingly independent of statistical records” to take in to account the rising cost of claims as detailed in iii. above;

v.    premium will be adjusted to ensure an adequate mutual level of contribution towards the larger claims within the Club’s retention below the Pool;

vi.   a proportion of the Club’s overall Pool claims under the Pooling Agreement;

vii.  IG Excess of Loss Reinsurance costs will be added, per other Clubs.

All of the above factors are taken in to account by the IG Clubs (and indeed any P&I insurer), the difference being that iv. above is detailed by other Clubs as a General Increase.

All standard deductibles will increase by USD2500 from 20 February 2015 Owners Mutual P&I/FDD, Owners Fixed P&I/FDD and Charterers P&I/FDD.

Full details of the Club’s circular can be found here.