A rated financial security from Standard & Poor's
The Club’s focused management of risk and capital strength resulted in Standard & Poor’s (S&P’s) reaffirming its A rating (stable outlook) in 2023. For many years the Club has been one of the only members of the International Group (IG) that has consistently maintained an A rating with a stable outlook, which reflects the view that the capital adequacy of the Club remains above S&P’s requirements for the ‘AAA’ level and can be expected to do so for at least the next two years. This is largely due to the wide spread of risks that the Club insures, providing stability in underwriting performance and stability in premiums.
As one of the 12 members of the IG providing Protection and Indemnity (P&I) cover to some 90% of the world’s ocean going ships, the Shipowners’ Club occupies a unique position as it maintains a leading position in its focus on providing P&I insurance for smaller and specialist vessels. This niche market provides the Club with a resilient and successful position within the P&I insurance market which is underpinned by sector expertise and sound intermediary relationships. Receiving an A rating reflects S&P’s expectation that the Club will maintain its market share and will continue to benefit from the competitive advantage that comes with being a member of the IG.
What’s more, the Club has demonstrated its ability to sustain high Member retention and to continue to achieve a breakeven underwriting result that compares favourably against other P&I clubs. For example, due to strong underwriting performance in recent years, the Club’s five-year average combined ratio stands at 100%, which reflects our ability to provide insurance ‘at cost’.
The self-service broker portal, P&I Online.
In 2022, the Shipowners’ Club released P&I Online, a self-service portal which provides an effective, on demand service for our Members’ brokers. Acting as a one stop shop for brokers’ evolving needs, the portal provides 24/7 access to crucial information and documentation. Wherever the broker may be and at whatever time, they are able to view and download key information at their convenience through P&I Online. Throughout 2023 the portal has gone from strength to strength, with 340 brokers and over 1,000 broker contacts respectively signed up.
Within the portal, brokers have access to:
- Broker statements
- Loss ratio and claims summaries
- Trading Certificates
- Open quotes
- Member, vessel, and policy details
- Renewals summary (with the ability for brokers to bind renewals available on request)
- Terms and conditions
- Contact details
The Club recognises the ever-growing demands on brokers, and its ambition has always been to provide the highest levels of service through transparency and accessibility. Ongoing investment in system solutions to deliver against this goal means that there are more portal developments and exciting updates to come.
A stated policy of zero additional calls and zero release calls (premiums we quote are inclusive of reinsurance costs).
The release call system is applied across most International Group (IG) clubs. The majority of IG clubs charge release calls in the event that a Member wishes to leave and obtain cover elsewhere. These release calls are designed to cover the risk that an unbudgeted call is made for an ‘open’ year after the Member has left. This represents a further cost for Members, making it more difficult for them to forecast their cost of insurance cover. It also makes it harder for Members to change where they purchase their P&I cover, should they decide to move to an alternative club within the IG.
The Shipowners’ Club is one of the only IG clubs that has a policy of no release calls for its Members and has long maintained that this provides fairness to Members. Instead, the Club’s strategy is to retain its Membership through a focus on the quality of underwriting, fairness in claims handling and value-added services – providing value for money rather than tying in its Members financially.