West announces 5% general increase, citing increased “higher cost claims” and investment volatility.

The West of England’s free reserves are forecast to fall for the first time in a number of years to a little under USD 300 million, following an increased frequency of higher cost claims which, compounded by continued volatility in the financial markets, have shown current premium levels to be unsustainable.

As such, a 5% general increase will be applicable to the P&I class at February 2019, with a standard USD1,000  increase in deductibles. There shall be no General Increase for the FDD class where the deductible will remain unchanged. For charterer’s liability cover, there shall be nil General Increase for both P&I and FDD classes.

As is always important to highlight, West of England does not charge the General Increase surcharge to the Group Reinsurance element of the premium rate.

Release calls for both P&I anFD&D classes are updated as follows:

2016/17: Nil

2017/18: 7.4% of ETC

2018/19: 15% of ETC

The full renewal circular, which explains term changes, release call adjustments and instalment structures in more detail, can be found here in the Circular.

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