West of England: General Increase to counter inflationary pressures
Financial Position and General Increase
The Board were pleased to note the Club’s improved financial performance and in particular:
- A combined ratio of 97.9% at the mid-year point (though recognising that the current policy year has been abnormally affected by an almost complete absence of new Pool claim notifications)
- The positive impact of the targeted action taken at the previous renewal
- West’s Pool share falling from 10.27% to 7.29% and expected to fall below 7% by year end
Recognising however that premium remains insufficient to meet current and expected future claims costs, especially having in mind the potential impacts of high global inflation, the Board decided has that a General Increase of 10% will apply to all mutual P&I premium rates.
In view of continuing legal fee inflation, the Board also decided that a General Increase of 15% will apply to all mutual FD&D premium rates.
A fuller summery of the Board’s decisions, including deductibles and release calls, can be found in our Notice to Members here.
West believes that our Members’ interests are best served by clear and transparent financial reporting. We have therefore produced a short presentation hosted by Tom Bowsher, Group CEO, in which he discusses the investment market to-date, the current status of the Pool and the reduction in Covid claims.
Tom also reflects on the strategy taken in the last renewal that has led to West positioning itself as a larger Club in terms of gross premium and stabilising the Club’s capital with solvency coverage at 165%.
We hope you enjoy the video presentation, which shows why West is well positioned to address the ongoing issues faced by the industry.
Source: West of England