RE; 2015/'16 -P&I Renewals Insurance – 10% premium discount.

RE; P&I Renewals Insurance – 10% minimum premium discount.

 

- How could you improve your operating expenses?

- Is P&I premium contributions a major operating expense which could be   

  significantly decreased and how?

Well, yes, for certain cases/shipowners/ship operators which fall under the here below described ship managers/shipowners category;

The smaller size vessels ship operators/ship owners (typically below 10,000 GT, operating inland, offshore, coastal or limited range trades.)

Many International insurance specialists, like MM (Marasco Marine Ltd), think alike and agree that the bigger size vessels which trade world wide represent an entirely different risk profile when compared with the smaller size tonnage which is operated within limited trading areas and that there are key differences which necessitate different approach and solutions.

The fixed P&I market is viewed as a dynamic marketplace, with aggressive competition, without IGA (International Group Agreement) constraints which unfairly restrict shipowners from looking opportunities for a better P&I deal.

Thus, the Shipowners' interest for fixed premium P&I has broadened in the last five years as there is more A- rated insurers’ capacity and more competition than ever before.

MM (Marasco Marine Ltd) has access to over twenty- five fixed premium P&I insurers for smaller size and vintage tonnage, which operates within limited trading areas.

The total fixed P&I market sector generates an annual premium of USD 350 million approximately.

 

The fixed P&I rates have continued to fall annually for the last five consecutive years.

 

MM indicates that diversification will affect P&I Managers profitability but will significantly benefit shipowners premium expenses and will improve their OPEX overall! 

 

So far MM experience is showing that small medium size shipowners running fleets of 2-4 vessels are the big losers who cannot afford to compete with the larger competitors who operate 30-50 vessels of various sizes and in various trading areas taking advantage the economies of scale due to their volume.

 

Nowadays eleven of the thirteen IG P&I Clubs (or Club Managers) offer a fixed premium alternative! North Group, is another re-branded player to fixed premium market.

MM anticipates that average market rate per GT will continue to fall in 2015/16 and believes that will be able to secure a 10% discount ratio to its clientele and new acquired business.

P&I is a service which can be structured on a tailor made basis on affordable premium costs especially in difficult times like the one we experience nowadays.

 

Sincerely yours.

Anastasios Maraslis

President
+30 6945 590 744
info@marasco-marine.com
www.marasco-marine.com