Owners’ General Discount introduced with 5% reduction at 2021 renewal
11 November 2020
Gard announced today that the Board has approved a new premium policy for mutual Members which will come into effect on 20 February 2021. Key aspects include:
- The introduction of an Owners’ General Discount on the Estimated Total Call (ETC). Each November the Board decides if Gard’s capital position allows for the discount.
- The Discount will be deducted as a percentage of the ETC premium for the following policy year.
- The Discount applies to renewed entries and pro rata for ships entered during the policy year only, provided Gard is the “holding club” according to the IGA.
- The entire ETC premium, less the Owners’ General Discount, will be invoiced in three equal installments.
- For the 2021 policy year, the Board has agreed a 5% Owners’ General Discount.
This new discount is in addition to the 5% reduction in the last instalment of the ETC for the 2019 policy announced on 6 November, and that, instead of a General Increase, individual members rates will be adjusted to reflect their risk profile and claims record.
The Board also decided that the Owners’ Defence cover (FDD) will be offered as a fixed premium product from 20 February 2021, along with a wide range of supplementary covers to Owners’ Mutual P&I.
Rolf Thore Roppestad, CEO of Gard, said: “The premium policy for Mutual P&I balances the need for capital for the Gard group against the burden of premiums Members pay as owners of the group. The group’s strong results in recent years have been positive for our Members making the cost of our products lower.
“However, our previous practice of deferring any reduction in the ETC premium until several months after the end of the policy year in question has made budgeting harder for shipowners and makes it even harder for Members to appreciate the fact that the group’s superior performance has delivered lower prices.
“This is what has driven our review of the philosophy underpinning our model and the proposed changes. By bringing the discount forward to the beginning of the policy year, we aim to give our Members much greater transparency and predictability as to the real cost of buying mutual P&I products with Gard and rewarding them for being part of a strongly performing Club.”
Notes to Editors
- Gard is a shipowner-controlled provider of P&I, marine and energy insurance products, with gross written premium of USD 874 million, with nearly 550 staff in 13 offices around the world.
- The direct insurance entities within the Gard group; Gard P. & I. (Bermuda) Ltd, Assuranceforeningen Gard, Gard Marine & Energy Limited and Gard Marine & Energy Insurance (Europe) Limited are rated ‘A+' by Standard & Poor’s.
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