The American Club, London P&I Club and Japan P&I Club will seek a 7.5% increase in premium from shipowner members at February’s renewal.
The Japan Club said that although it has improved its financial situation following last year’s supplementary calls, it still feels rate levels are inadequate and the business environment remains “uncertain and challenging”.
“Although progress has been made in restoring underwriting balance over the past years, premium levels are still inadequate,” it said in a statement to members.
The London Club said that although it will not be seeking to apply a general increase to all members, it wants to raise its premium income overall by 7.5% at next year’s renewal.
It said it had a profitable underwriting performance in the first six months of the year and growth is in line with projections.
But it pointed to “persistent inflationary pressures on claims and operating costs” as one of the reasons it needs to adopt a “cautionary approach” on premium levels at the renewal.
The American Club said it will be applying an additional 40% supplementary call to be paid in 2024 after a further deterioration of claims costs in the 2021 policy year.
It will also target a 7.5% increase in premium, with rating determined by a member’s overall claims performance and risk profile.
“As has been the subject of extensive industry comment over recent months, premium pricing is still in need of upward adjustment to appropriately meet the realities of the current global risk environment and attain overall pricing adequacy,” the American Club said.
It called on members to support efforts to shore up its finances.
“The board is aware that elements of the American Club’s intended future action as set out above will not be welcome, but it remains resolute in its commitment to consolidate the financial standing of the club in order to provide a firm footing for the years ahead,” it said.
The West of England, UK P&I Club and Britannia P&I are also asking members for a 7.5% increase.