Circular 14/22: 2023 Renewal and Open Policy Years

OUTLINE

• The Board has set a general increase of 10 per cent on all mutual premium rates for the 2023 renewal. Members with adverse records should anticipate higher increases.
• The standard deductible will remain unchanged at US$15,000 per event, including fees and expenses.
• Any change in the cost of the International Group reinsurance programme will be passed on to the mutual Members.

2023 RENEWAL

At their November meetings in Dubai and Rotterdam, the Boards reviewed the financial position of the Club, including the performance of the open and closed policy years, and have set a general increase of 10 per cent on all mutual premium rates for the 2023 renewal. The decisions have been agreed by the Club and its subsidiaries, including UKNV which underwrites all EEA risks.

Release calls

In assessing release calls, the Directors take account of premium risk, catastrophe risk, reserve risk, counterparty default risk, market risk and operational risk.

For the 2023 policy year, the release call is set at 20 per cent of mutual premium, plus any outstanding instalments of mutual premium.

For the 2023 policy year, the mutual premium will be payable in three instalments during the policy year. Previously, mutual premium has been payable in four instalments.

Deductibles

For the 2023 policy year, the standard deductible will remain unchanged at US$15,000 per event, including fees and expenses (or the dollar equivalent in other currencies). The Club may propose higher deductibles as part of the renewal terms for Members with adverse records.

IG Reinsurance

Any change in the cost of the International Group reinsurance programme will be passed on to the mutual Members.

OPEN POLICY YEARS

2020 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 5 per cent.

2021 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 10 per cent.

2022 policy year

There is no supplementary premium estimated for this policy year. The release call is set at 15 per cent of mutual premium plus any outstanding instalments of mutual premium.

For more information

Members requiring further information should contact their usual Club contact