UK P&I Club sets 4.5% premium increase for the 2027 policy year

The Board of the UK P&I Club agreed to a general increase of 4.5% in premiums for the 2027 policy year. The Club explained that the decision responds to ongoing claims inflation and the rising cost and complexity of large claims.

The Club's performance during 2026/27 remains in line with expectations. Pool claims were relatively moderate during this period and, although retained claims have been higher than anticipated so far this year, favourable development of claims from prior years points to a year-end combined ratio close to 100%, an improvement on 2025/26. The Club also reported strong investment returns and solid capitalisation, with free reserves exceeding $600 million.

The Club and TT Club jointly acquired Thomas Miller Holdings in October 2026, bringing management under the Clubs' control and allowing more value to be retained for members. This transaction forms part of a larger deal that will bring the two Clubs together on 20 February 2027, subject to regulatory approval, and would create the first transport mutual covering the entire cargo supply chain.

Inflation continues to affect underlying claims costs, particularly those related to illness and injury. The Club also warns that large claims are becoming more complex and costly, with salvage, environmental response, wreck removal and third-party liability costs that can rise well above general inflation. In addition, upward pressure is expected on the cost of the International Group's reinsurance programme for 2027. Despite this, the Club's financial strength and the expected benefits of the merger allowed the Board to keep the general increase at 4.5%, while also applying a 10% increase to deductibles below $50,000, subject to a minimum of $1,000.

William Beveridge, Chief Underwriting Officer of the UK P&I Club, said that the general increase reflects the continuing rise in underlying claims costs, and that while Pool claims were moderate this year, large claims are becoming more costly and complex, as are illness and injury claims. He added that the Club's financial strength and the expected benefits of the merger with TT Club support a long-term view, keeping the increase at 4.5% while covering the inflationary rise in claims costs. According to Trade news, Beveridge was identified as the Club's CEO elect and attributed the increase to rising costs of large claims and personal injury claims.