The underwriting work achieved
significant progress during the 2010 Policy Year. The volume of entered tonnage
maintained a high growth rate.
In the 2010 policy year, 207 ships
totaling 7.02 million GT were newly entered in the Association, among which 95
ships totaling 4.27 million GT were newbuildings,
accounting for 61% of the newly entered tonnage.
Owing to a flat shipping market, the
competition in the insurance market has become more sever. Under such circumstances,
the Association still maintained the increase in entered tonnage, due to the high
quality of services, sound financial standing, and the competitive price the
Association had offered during past 10 years. These factors have gained wide
recognition among the majority of Chinese shipowners.
In the underwriting and
marketing aspects, the Association carried out a considerable amount of work in
research, screening, promotion and evaluation. To ensure the quality of
members, the Association has called on every new applicant to observe their
operations, and explain to them the rules of the Association.
At February 20th 2011, the
Association has 135 Members with 1043 entered ships totaling 27.8 million GT.
The total entered tonnage increased by 3.79 million GT, representing an
increase of 15.79% in comparison with the previous policy year.
Substantial achievements were made in
collecting calls and premiums in the 2010 policy year. The collection rate for
advanced calls and premiums reached 98.3%. At February 20th 2010,
the accrued premium receivables amounted to $ 2.34 million, which increased by
30% compared to that of the previous policy year.
In the 2010 Policy Year, the shipping
market was still sluggish. Affected by the previous financial crisis, some
Members experienced difficulties in their operation and cash flow. The majority
of Members could pay the premiums on time, due to the enhanced awareness of fulfilling
the insurance contract. As such, the Association accomplished satisfactory
results in the collection of calls. However, some Members were unable to make
payments of premiums on time. To protect the interests of all Members, the
Association wished those Members could pay the premiums without delay.
3. International Co-insurance
In the 2010 policy year, the 13 members
of the International Group of P&I Clubs set their general increases ranging
from 0% to 12.5%, at an average of 4.6%. Due to the high loss ratio and the
increase of major claims in the Clubs with which the Association has had
co-insurance programs, especially under the blow suffered by those Clubs in the
global financial crisis, the Association was under pressure to accept a higher
increase in the co- insurance premium. However, the Association was able to
conclude a renewal arrangement with each Club for an average increase of 4.3%
per GT comparing to that of policy year 2009.