20th February Renewal 2018
Having completed 5 years of trading in 2017, we undertook a full review of our written business in order to form an underwriting strategy for the coming years.
Three things were decided upon:
1. Rates for certain types of vessels need to be increased.
2. The vessels insured by type should be more diverse.
3. Other lines of business should be added to our offering.
1.Owing to constant rate erosion It was observed that certain vessel types were no longer paying enough premium to justify being written. Consequently, it was agreed from 1st January to apply increases in premium and deductibles to those vessels that were deemed under paid based on perception of risk and losses incurred. Thanks to tremendous support from the Brokers and Assureds with whom we work, February renewals were concluded with a retention rate of over 80%. In addition, 18 new Assureds joined Lodestar, adding 141 vessels to our book, helping us towards our goal of greater diversity by vessel type within our portfolio.
2. Diversification has been something on which we’ve been working for the last couple of years, tailoring cover to appeal to vessels other than the small ship cargo carrying vessels traditionally associated with Fixed Premium P&I providers. We have the ability to write cargo vessels up to 40,000 gross tons and have enhanced our ancillary cover package (Contractual liability, Specialist Operations etc.) in terms of limit and premium. We can also offer limits of up to USD 1,000,000,000 and have the requisite licences and blue card capability to cater for Worldwide trade.
3. The recent purchase of Lodestar by Ryan Specialty Group (RSG) will allow us the opportunity to write additional lines of marine business, complementing our existing P&I offering. Discussions are underway with ‘A’ rated insurers to provide the necessary capacity, whilst underwriting and claims handling capability is in the process of being sourced. The ability to offer multi line policies is rare in the Fixed Premium market and will make us a more attractive proposition for those owners who would like to centralise their insurance arrangements.
By definition, Lodestar is a guiding light that leads the way and as the dust settles on another February renewal it remains clear that we have a big part to play in shaping the industry over the next few years.
We thank all of our clients for their loyalty and look forward to working with them during the year ahead.