We were kindly asked by Tradewinds to give a short overview of how we see the H&M and P&I market in 2015.  Here’s what we said in Tradewinds 9 January 2015 edition:

“P&I

The main themes for 2015 are diversification, regulatory effects, fixed premium and the Nairobi Convention.  Diversification of IG Clubs’ product base continues, the latest being Standard Syndicate 1884, starting in April. Regulatory controls and rating agencies continue to influence underwriting strategies, frustrating both Clubs and members. Large (arguably unnecessary) solvency margins might mitigate exposure to unbudgeted calls, but they exert upward pressure on premium at a time when operators are suffering. More billion dollar limits in the non-IG market offer operators more alternatives which will probably siphon tonnage from the mutual  system. Lastly, shipowners must ensure they have Nairobi Convention certificates by April 2015, a significant (and welcome) uniformity to international law.

Hull & Machinery

Consolidation, excess capacity and China!  An XL/Catlin tie up and RSA becoming Allied World could create room for new leaders, hopefully consolidating premium and reducing the number of markets writing marginal books.  Singapore will continue to be the first choice for new entrants, but the China market writing more inward international business and providing first class service is going to be where the real opportunity for owners lies.”

Contact us if you would like us to know how to take advantage of the opportunities we see in 2015 on [email protected]

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