P&I claims and premiums on the rise, Aon report says

The surge in costly in protection and indemnity (P&I) pool claims in 2006 could be a sign of the times, as booming shipping operations become more expensive, according to Aon’s P&I Pre-renewal Report 2007.
In anticipation, P&I clubs are already initiating increases of 10-20% in shipowners’ premiums at the next renewal, Aon’s report notes.
“The high value of claims in 2004 – so far totalling US$280 million – were viewed as an anomaly, yet current evidence suggests that costly claims may be a feature of the current cycle,” Aon says in a press release.
Aon says 2006 claims, if they follow recent trends, could reach US$580 million. The 2006 average claim value of US$18.06 million would nearly double the 2004 average of US$9.66 million.

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