30 October 2025 — The Shipowners’ Club, a mutual P&I insurer for small and specialist vessels, has announced a 5% General Increase in premiums for the 2026 policy year, inclusive of any changes to reinsurance costs. The adjustment reflects the ongoing effects of inflation and the widening gap between premium income and claims costs.
The decision was approved at the Board meeting on 28 October 2025, where it was noted that prior-year claims were developing ahead of budget. Although no severe incidents were reported, both Member claims and International Group Pool claims remained elevated. As a result, the Board expected the Combined Ratio for 2025 to exceed 100% by the end of the third quarter.
At the half-year stage, the Club reported a Combined Ratio of 99.6% and an underwriting surplus of $0.6 million, compared with 95.8% and $5.4 million at the same point in 2024.
The number of claims from Members during 2025 has been stable, but the total quantum for cases up to $3 million reached the highest level since 2020, a year affected by the COVID-19 pandemic. Claims to the International Group Pool also remain higher than those seen at the same development point in 2024.
Although no General Increase was applied for 2025, premium income has continued to grow. However, inflationary pressure has pushed up claims costs. From an investment perspective, the year-to-date performance has been positive, and a favorable investment result is forecast for the full financial year.
For 2026, the Club expects continued growth in membership, vessels, and gross tonnage, building on 2025’s expansion, though it acknowledged that economic uncertainty may affect the pace of that growth. Persistent inflation and modest increases in reinsurance costs are expected to influence underwriting results.
The Board also resolved to apply a 10% increase in P&I deductibles, subject to a minimum increase of $500. This marks the first deductible adjustment since 2023. For LCC claims, where no change has been made for an extended period, minimum and maximum deductible levels will be reviewed, and Members will be notified individually.
In its Renewal Circular issued on 30 October 2025, the Club reaffirmed that premium increases will be sought only when necessary to maintain the underwriting balance. The Board also recognized continued growth in free reserves and confirmed it will review the level of capital required to support the risks undertaken by the Club.
As in previous years, the Managers will review each Member’s claims history and operational risk profile and apply appropriate adjustments to premiums, terms, or deductibles. The Club’s policy of selective ship inspections and management audits will continue.
Finally, the Club reminded Members and brokers that renewal documentation cannot be issued while any premiums remain outstanding.
