Britannia P&I is seeking a 12.5% increase in premium at the February 2022 policy renewal to correct its underwriting deficit.
At the same time, the London-based protection and indemnity mutual said it also would return $25m to its current mutual members.
Britannia said an increase in total premium is required to achieve its business plan of breaking even on its underwriting activities.
Its forecast of a deficit in the current policy year is "higher than originally expected" after it was affected by a "challenging claims environment".
In a note to members, the club said: "We believe our approach to the 2022/2023 renewal, together with the additional capital distribution, demonstrates Britannia's clear commitment to addressing the underwriting imbalance through sustainable levels of premium that meet claims exposure."
Britannia has regularly returned surplus cash to members over recent years. It is one of the most financially robust of the 13 P&I clubs and has redistributed $120m in capital to members since October 2017.
Britannia said its members have benefited from $135m in capital distribution and deferred calls waivers since May 2016.
Two years ago, the club decided against setting the traditional P&I annual general increase at which premium increases are applied to all members.
This year, it has indicated a clear target increase in premium that it is hoping to achieve. It said it would determine the increases to be paid by each member based on its claims record and risk profile.
