Oslo-based mutual insurer Skuld will increase the cost of its protection and indemnity insurance cover by 10% at next February's policy renewal.
The increase is an attempt to correct recent underwriting losses. Skuld has also recently had a negative change in its outlook from ratings agency S&P Global Ratings, while its capital reserves have also fallen.
The 10% increase will be applied to all P&I mutual and freight demurrage and defence policies.
"Due to continued underperformance of the mutual portfolio and growing concern from the rating agencies in relation to the overall performance of the mutual P&I market, the board sees a need for rate rectification at this coming renewal," Skuld said.
The P&I sector has been hit hard by years of falling rates, and two record-breaking years under the International Group of P&I Clubs pool claims system.
Clubs have also been hit by continued coronavirus-related crew claims.
The announcement is a significant one for Skuld which has not announced a general increase in premiums in 10 years. It usually bases its mutual members' premium purely on their claims performance and risk profile.
Because of a series of expensive claims, shipowners are not only facing an increase in basic insurance costs but also reinsurance costs for the International Group pool.
In September, Skuld's half-year results showed premium had increased by $11m to $201.1m, but its technical underwriting loss was $54.1m.
Its P&I reserves fell from $459m in the 2020/2021 policy year to $425m in the first six months of the current policy year.
