The UK P&I Club has set a 4.5% general increase for the 2027 policy year, citing continued claims inflation and the rising cost and complexity of major casualties.
The increase is lower than the 7.5% general increase the club set for the 2026/27 year. The club will also target a 10% increase in deductibles below $50,000, with a minimum increase of $1,000. Individual renewals will reflect each member’s record, risk profile and existing terms.
The club forecasts a year-end combined ratio of around 100% for 2026/27, an improvement on 2025/26. International Group pool claims have been relatively benign, but retained claims have been higher than forecast so far this year. Positive development on prior-year claims has offset that.
The club’s board circular noted that, unusually, several pool claims have been reported without substantive estimates, which adds some uncertainty.
Investments have produced sound returns, and the club has free reserves of more than $600 million.
The club said inflation continues to push up underlying loss costs, particularly for illness and injury claims. Major casualties are becoming more complex and expensive, with salvage, environmental response, wreck removal and third-party liabilities able to rise well ahead of general inflation. It also expects upward pressure on the cost of the International Group’s reinsurance programme for 2027.
“The Club’s financial strength, and the expected future benefits of the merger, allow us to take a longer-term view, keeping the General Increase to 4.5% while recognising that premiums need to cover the inflationary increase in the cost of claims,” said William Beveridge, chief underwriting officer of the UK P&I Club.
The club said its financial strength and the benefits of its upcoming merger had allowed the board to hold the increase at 4.5%. The UK P&I Club and TT Club completed their joint acquisition of manager Thomas Miller in October. The two clubs are due to merge on 20 February 2027, subject to regulatory approval, to form United Transport Mutual, which they describe as the first transport mutual spanning the full cargo supply chain.
The announcement is among the first for the February 2027 renewal. At the 2026 renewal, general increases across the International Group averaged 6%, according to Lockton. As Insurance Business has reported, clubs are moving closer to technical balance as reserves climb, which strengthens members’ hand in pushing back on increases and pressing for capital returns.
For marine brokers, a 4.5% general increase from a major club sets an early benchmark for February. The figure is lower than last year, but the higher deductibles and individual rating mean some members could face larger effective rises, depending on their record.
Brokers should look closely at the deductible change for members with low deductibles, and at how the merger affects service and governance from 20 February. With other clubs yet to announce, the UK Club’s figure may also become a reference point in negotiations elsewhere.
