War risk insurer Hellenic to cut premium rates to 2002 levels

THE Hellenic War Risks Club has announced it will reduce gross rates of advance premium 15 per cent from January 1 as the low level of claims in recent policy years has continued in 2007.

"This reduction will bring down advance contribution rates for 2008 to below those of 2002 when rates increased sharply in the aftermath of 9/11," said Hellenic chairman John Lyras.

As a result, the basic gross rate for the Hellenic war risks cover in 2008 will be 0.011475 per cent of the entered fleet value. The club said in a statement it will also continue to operate a sliding scale of member discounts, ranging from 20 per cent for fleets valued up to US$100 million, and to 50 per cent for fleets worth more than $1 billion.

The move comes as the club's income has remained stable. New fleets have joined the Hellenic and existing fleets have grown in value during the year. Membership now stands at about 2,200 ships with a total entered value of over $80 billion."

The club will also offer members an additional war risks loss of hire insurance from January 1 as an optional measure.