Members of the Japan P&I Club face a 10% increase in premium at the February 2022 policy renewal, and a change to the way loss records are calculated.
Following its annual board of directors meeting, Japan P&I said it had faced an increase in its own retained claims — covering both its coastal and ocean-going fleet — and also claims linked to the International Group of P&I Clubs.
It said that in response to the worsening claims situation, a 10% general increase would be applied to its owners and charterers policies at the upcoming renewal.
Further increases could also be applied to those members with poor loss records. Any increase in the International Group's reinsurance programme will also be passed onto members, Japan P&I said.
Japan P&I is also changing the way it calculates its members' loss records to bring it more in line with the method used by other International Group P&I clubs.
Japan P&I will now calculate loss records on a net rather, than gross, basis. The net basis will also include indirect costs such as the International Group reinsurance costs and abatement costs. Loss records will also be based over a six-year period rather than the current five-year period.
"Net loss ratio is used by many of the clubs in the International Group as it is a more comprehensive risk index. Net loss ratio provides a clearer picture not only of the claims trend of individual members but of the contribution they should make towards the expenses needed for the management of the club," Japan P&I said.
