DUBAI: DGS Marine, a leading global P&I management provider and exclusive manager for the British European and Overseas (BE&O) P&I facility, has highlighted the benefits of fixed premium P&I cover for ship owners and operators in the Middle East. He recorded 22 per cent growth in the Middle East current year and 19 per cent growth in premiums during the 2013/14 policy year
David Skinner, Managing Director of DGS Marine Group, was speaking at the Seatrade Middle East Maritime conference in Dubai, where DGS Marine was a leading sponsor.
Discussing the growing appeal of alternative models of P&I cover to ship owners in the Middle East, Skinner said Middle East ship owners face the same global challenges, with tough market conditions, including low freight rates, high fuel costs and the burden of new regulations, placing pressure on balance sheets.
“Under these conditions, it is imperative that owners have financial control and transparency in order to manage all of their costs, including marine insurance.”
Skinner said the need for certainty and transparency is the driving force behind the significant growth in the fixed premium P&I market, both here in the Middle East and globally.
“Fixed premium cover gives owners complete certainty over their insurance costs. In other words, the figure they are given when they purchase the policy is the full and final insurance cost. Then, when it comes to the renewal process, the key determining factor is an assessment of the owner’s own claims record.”
“There are plenty of reasons to be optimistic about the growth of shipping in the Gulf, despite tough global conditions. More shipping companies are establishing themselves in the UAE and significant investment is being made in the UAE as a shipping hub. This includes the expansion of port capacity, such as in Jebel Ali and Fujairah, and support for Dubai’s growth as commercial base for owners, operators and service providers, given its proximity to US, European and Asian markets.
DGS Marine Group has also seen considerable growth in the Middle East in the past year, driven both by its cargo claims operations in Dubai and by P&I premium growth.
“This has been accompanied by a growth in the client base of the wider DGS Marine Group in the last year. In fact, the Middle East has been one of our fastest growing regions. P&I renewals in February 2014 resulted in a 22 per cent growth in premiums in the Middle East for DGS Marine Group, in our capacity as a P&I provider and exclusive manager for the BE&O P&I facility.”
The rapid growth of fixed premium cover is a defining feature of P&I market and DGS Marine is one of the leading providers of fixed premium P&I cover. DGS Marine saw a 19 per cent growth in premiums during the 2013/14 policy year, which included a 22 per cent growth in the Middle East. DGS Marine Group is also the only fixed premium P&I provider to publish audited annual reports.
