Income is a major consideration in the underwriting of the majority of ITIC members. Many companies are currently suffering during the current depressed markets. With members declaring substantially lower incomes than at their previous renewal (which for many will have been in 2014 due to the availability of the ITIC two year policy) the market situation is being reflected in member renewal discussions with ITIC.
New premium income gained in 2015/16 was nearly US$ 3m of which 83% was brought to ITIC by insurance brokers. We are grateful for this support. Increased insurance broker awareness of ITIC’s provision of professional indemnity insurance to the rail and aviation industries has produced a healthy growth in terms of new members and premium. ITIC’s strength in the rail market has been within the UK, although the growth from overseas is steadily increasing.
As you will have seen from the Chairman’s statement the continuity credit structure for the current year remains as per 2015, providing all members who renew for a 12 month period with a 12.5% continuity credit, or 17.5% credit for a two year option. Many of ITIC’s members continue to favour two year policies with approximately 65% (by number) and 80% (by premium) renewing on that basis.