A warning that the protection-and-indemnity (P&I) clubs could face more claims as the global economy and shipping activity recovers has been issued by the AM Best ratings agency.
In a post-renewal review of the International Group clubs, AM Best says “pricing decisions made now should reflect the prospect of higher claims frequency, as well as claims inflation”.
The rating agency cautions that the premium income of the clubs is under pressure and competition intense, as their shipowner members endeavour to reduce costs to cope with a challenging commercial environment.
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