Hanseatic Underwriters are pleased to report on another successful, albeit challenging, 20 February renewal season.
The chief characteristic of the fixed premium P&I market in recent years has been soft pricing brought about by both increasing competition and the on-going economic pressures endured by ship owners and operators worldwide.
New fixed premium entrants, including the International Group (IG) Club management companies seeking to maximize their income through fixed-premium spin-offs operated from within the Club’s existing resources, as well as commercial undertakings looking for immediate market share, are inevitably factors in ‘the rating game’. However the traditional mutual market, with its willingness to absorb under-rated fleets within a protective release-call mechanism, has itself intensified the competition for the fixed market.
In a more positive context there remains a clear inclination on the part of budget-conscious operators away from the mutual market pricing mechanisms of the traditional Club structure. The German market has always been dominated by the IG Clubs but Hanseatic Underwriters’ ‘home’ portfolio continues to grow regardless, driven by high technical and servicing qualities and the best possible security.
Renewal and new business negotiations were as much about service and reputation as about pure price. In all respect the Hanseatic brand continues to strengthen both in our domestic market and internationally. The combination of ‘Made in Germany’ management and claims handling expertise together with globally recognised London market security is a unique and winning combination in our market sector.