The Standard Club says it will apply a 10% general increase at its final protection and indemnity policy renewal before it merges with North P&I Club.
A fall in International Group of P&I Clubs pool claims has helped the London-based mutual insurer improve its underwriting result to a profitable combined ratio of around 97%.
But the club has been hit by a 4.9% investment loss, inflationary pressure on claims costs and a deterioration in the cost of prior year claims.
Chief executive Jeremy Grose said: “We believe that an increase in premium is required to ensure a sustainable club with adequate capital strength and additional contributions will be sought from members with adverse records.”
The Standard Club’s increase is broadly in line with most of the other P&I mutuals, which have largely opted for increases of between 5% and 10%.
After next February’s renewal, the Standard Club will merge with North P&I to create NorthStandard — the second-largest P&I mutual insurer.
North P&I has yet to announce its renewal policy.
Grose said Standard Club members can continue to expect good service at a low cost following the merger: “NorthStandard will allow us to build even greater stability, service and strength to support our members through operational, financial and technical performance.”
