The mutual insurance association Shipowners’ Club said last week that a general increase of 5% would be applied for 2026, inclusive of any changes to reinsurance costs.
“Given the obvious impact of inflation and the imbalance between premium and claims the board resolved that a general increase of 5% would be applied for 2026, inclusive of any changes to reinsurance costs,” the Shipowners’ Club statement reads.
In a renewal circular issued on Oct. 30, the Shipowners’ Club noted that its board express the wish to only ever ask for increases in premium when absolutely required to maintain underwriting balance.
The board also resolved that a 10% increase in P&I deductibles would be applied, subject to a minimum monetary increase of $500. This is the first such increase since 2023.
The number of claims from the Club’s membership for the 2025 year has been stable, the Shipowners’ Club highlighted, although the total quantum for claims with an estimated value up to $3m is at the highest level since 2020, a year that was impacted by Covid-19.
Meanwhile, claims to the International Group Pool on a calendar year basis are higher than in 2024 at the same stage of development.
Despite not applying a general increase for 2025, premium income has continued to increase albeit the impact of inflation is feeding through to overall claims costs.
Building on growth in its membership in 2025, the Club expects to continue to see steady growth in the number of members, vessels and gross tonnage during 2026, although economic uncertainty may impact the level of growth achieved.
According to Shipowners’ Club, ongoing inflation will continue to impact claims costs and some modest increases in reinsurance costs are expected.
Furthermore, the managers -as in previous years- will also review individual members’ claims records and operational risks, applying commensurate adjustments in premiums and terms where appropriate.
This may include adjustments to deductible levels, the Shipowners’ Club said, adding that its policy of applying selective ship inspections and management audits will also remain.
At the half year stage, the Club reported a combined ratio of 99.6%, with an underwriting surplus of $0.6m, compared with 95.8% and $5.4m at the same stage of the prior year.
The Shipowners’ Club is a mutual insurance association. It offers protection & indemnity (P&I), legal costs cover and associated insurances to small and specialist vessel owners, operators and charterers around the world.
