P&I rates set to rise by up to 12.5%, says Tysers

Shipowners are set to face premium increases of up to 12.5% for their February 2014 protection and indemnity (P&I) renewals, according to a report from Tysers published this week.

The Lloyd’s broker said rate rises were likely to average 7.5% amid declining investment income and combined operating ratios still lying above 100% as a result of the increasing cost of large casualties.

Tysers’ report said it also anticipated reinsurance costs to climb as a result of the increased reserving for the Costa Concordia incident.

Tysers marine division director Martin Hubbard said: “We would anticipate increases in the range of 2.5% to 12.5% with an average of 7.5%, and there will inevitably be another substantial increase in reinsurance costs as the Costa Concordia reserve has risen from $684m (£425.6m) last year to $1.2bn.”

Last year rates increased by between 5% and 16.5% with an average increase of 7.5%.