Facing up to the real cost of P&I

1. Facing up to the real costof P&I Douglas Jacobsohn CEO

2. Real premium cost • Balanced technical result shows whether members are meeting the real cost • Reliance on investment income hides the real cost • Capital injections might only have temporarily effects

4. Real claims cost • Increasing legal exposure • Conventions • Claims environment tougher • Environmental sensitivity • every drop of oil has to be cleaned up • every wreck has to be removed

5. Increased liabilities are here to stay • real claims costs will increase • higher P&I costs inevitable – cannot take it for granted investments will carry the burden

6. Real running cost • Litigation & dispute resolution is core activity • High cost exercise so efficiency essential • Focus on costs

7. Mutuality • Foundation of mutuality – unchanged • Change in ways of achieving this • Maximising use of modern data systems • Accurate pricing models • Running club as a business – supports the underlying principle of mutuality • Transparency