The premium income of the Non-IG P&I market has increased by 2.2% to USD 301 million in the past 12 months. The Premium Income of Non-IG Insurers chart shows premium development across individual insurers.
There continues to be significant variation in the growth and size of individual insurers in the Non-IG market. The smaller insurers generally recorded a high growth rate in premium income in the previous two years, but the combined total of the three smallest insurers represent only 11% of Non-IG market premium. In contrast the largest insurers have reported gradual growth, but the four largest insurers combined account for over 70% of Non-IG market premium.
Benign claims and a soft reinsurance market provide a forgiving underwriting environment. Shipowners welcome the competitive effect of insurers determined to obtain, or maintain, a critical mass of insured tonnage. The insurers which disclose insured tonnage over this period show tonnage has outpaced premium growth, resulting in lower premium per ton insured.
In discussion with Non-IG insurers we continue to highlight the importance of claims expertise and underwriting results. This is key information in determining whether an insurer is suitably robust to perform as a long term risk partner in a more challenging claims or reinsurance environment.
The Non-IG Insurers Market Share (Owned) pie chart opposite displays that the Non-IG market for owned P&I is led by British Marine and RaetsMarine, which account for over half of the premium income.
The Non-IG Insurers Market Share (Charterers Liability) pie chart similary displays the Charterers Liability market is dominated by The Charterers Club and RaetsMarine which account for over three-quarters of the premium income.
The insurers considered are markets outside the IG Clubs offering cover for owners worldwide. There are regional P&I facilities omitted from our analysis because they focus on trade in specific locations and are not comparable in the covers which they offer.
| Non-G P&I facility | Maximum P&I Limit (usd) | Annual Written Premium (usd) | Standard & Poor's Rating* |
|---|---|---|---|
| British Marine | 1 billion | 105,000,000 | A+ (QBE Insurance (Europe) Limited) |
| Carina | 500 million | 12,300,000 | A+ (Lloyd's) |
| Eagle Ocean | 500 million | 6,800,000 | BBB- (American Club) |
| Hanseatic | 500 million | 20,600,000 | A+ (Participating Underwriters) |
| Hydor | 1 billion | 15,000,000 | A+ (Lloyd's) |
| Ingosstrakh | 1 billion | 16,000,000 | BB+ |
| Lodestar | 1 billion | 29,000,000 | A (RSA) |
| Navigators | 1 billion | 18,800,000 | A |
| RaetsMarine (Owned) | 1 billion | 52,300,000 | A- (Amlin Europe N.V.) |
| Thomas Miller Specialty (Osprey) | 500 million | 25,000,000 | A+ (Lloyd's) |
| Non-G P&I facility | Maximum P&I Limit (usd) | Annual Written Premium (usd) | Standard & Poor's Rating* |
|---|---|---|---|
| Charterama | 350 million | 9,800,000 | A (RSA) |
| The Charterers P&I Club | 500 million | 29,500,000 | AA- (Munich Re Group) |
| Norwegian Hull Club | 500 million | 8,500,000 | A |
| RaetsMarine (Charterers) | 500 million | 25,900,000 | A- (Amlin Europe) |
Following its acquisition in October 2015, Thomas Miller changed the trading name of Osprey Underwriting Agency to Thomas Miller Specialty, which will continue to offer Marine Hull, Liability and Aerospace cover alongside new products for Cyber Risk and Kidnap & Ransom.
In August 2016 Korea P&I Association and Standard Club Asia Ltd entered into a cooperation agreement to offer fixed premium P&I to a limit of USD 1 billion. The new entity, to be known as KSC Facility, will target Korean domiciled owners operating ships of under 10,000 gross tons trading in Asia.
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