Traditionally the 20th of February has been an important date for the Protection and Indemnity insurance industry. That date goes back to an era where it was the unofficial first day of the season where sailing ships came out of their winter layup period, resuming the trade routes to the Baltics. Even nowadays the 20th of February remains to be a well-known renewal date, although in the modern age of time you would think it would make more sense to use the financial year or let the P&I insurance policy renewal date coincide with that of, for example, the Hull and Machinery Insurance policy.

Mutual clubs use a system where they can apply a general increase in premium (and supplementary calls) and/or on deductibles to all members of the mutual if the results of the mutual are under pressure.

The mutual system was set up in an era where shipping was not so diversified as it is today. It may have worked well back then and it may still be an effective system today for certain types or larger tonnage.

However, nowadays the profiles of the club members are so diverse that one can question whether that system is still a fair one, particularly for those operating smaller tonnage.

Members working in entirely different sectors of the shipping industry with entirely different exposures are given the same one-layered approach as when P&I insurance started two centuries ago. Regardless of its individual results, a club member must pay the general increases and supplementary calls imposed on them. There is no escape, or is there?


EF Marine is a P&I fixed premium insurance provider. Unlike the mutual P&I system we are open to other dates than the 20th of February. We can offer longer (or shorter) insurance periods on a pro rata basis which will help you to align your insurance renewals at a date that suits you. And we are supported by one of the biggest and strongest (re)insurers of today’s world.

Unlike a mutual club we don’t impose general increases or supplementary calls. We judge Assureds on their individual risk profile and performance. We will tailor the terms, conditions and premium level to fit your needs.

No general increases, but a straightforward, simple to understand and individually tailored insurance cover supported by a leading P&I team.

At the time of writing this article the IGA clubs have started to come out with their announcements in respect of the upcoming 20th February renewal. The first indications are that on average the general increase applied will be 7.5%, with some clubs additionally increasing deductibles with 10%. This may not sound like a lot, but year on year it turns out to have quite an impact. This is demonstrated by the graph below.

ef marine renewal 2020 nov 2019















The graph shows the individual cumulative applied general increase for each IGA club for the years 2011 to 2018. It also shows that since 2011 premiums have on average risen with 32% and this is not even considering the increases applied in 2019 and the upcoming increases imposed at the 2020 renewal.

When you are an owner or operator of smaller and/or specialist vessels and when you are currently insured by the mutual system you can make a choice.

You can ask yourself the question why you should support the big clients in a Mutual who most likely do not pay the premium they should - and you probably pay too much. You can stay within the Mutual system and accept the year on year applied general increases or take control of your situation and decide to have an individually tailored insurance cover. An insurance cover where you know your insurance cost in advance rather than having surprises afterwards by having to pay supplementary calls.


Should you have any questions following this information, please do not hesitate to contact us.


EF Marine provides Fixed Premium P&I solutions to Shipowners, Charterers and MultiModal operators. EF Marine has a global client base and offices in Singapore and Rotterdam. EF Marine provides ‘AA-‘rated security from Swiss Re Corporate Solutions with limits up to USD 500m. Through our partnership with Swiss Re Corporate Solutions we provide our clients with first class security combined with EF Marine’s extensive knowledge of the P&I market.