The UK P&I Club has told its shipowner members that it is targeting a 12.5% general increase in premium at next year's February policy renewal.
The hike in rates is an attempt to address the London-based club's underwriting losses. The UK Club reported a 149% combined ratio for the 2020/2021 policy year, one of the highest losses among the International Group of P&I Club's 13 members.
The general increase will not be uniform across the membership but individual claims records will also be assessed.
"Members with adverse records may pay more," the UK Club said.
The club's deductible remains unchanged at $15,000 per claim, although the UK Club said the level may be raised for those with poor records.
The International Group is also currently renegotiating its two-year contract with reinsurers, which is expected to result in a significant increase in premium.
The UK Club said it would pass any increase in the International Group's reinsurance costs directly onto its members.
Significant increases
Underwriting losses incurred by all the 13 mutual members of the International Group are expected to lead to significant increases in premium at the next renewal.
The West of England was the first to set a general increase policy and has already announced a 15% general increase.
The London P&I Club has also been forced into making a costly supplementary call on its members to address its underwriting losses.
