P&I Club Renewals Bring 5-8% Premium Increases and Higher Deductibles
Protection & Indemnity Clubs are implementing general increases for the 2026-27 policy year. Container shipowners face a steep 15% hike in reinsurance costs reflecting elevated claims activity.
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What Happened
Protection & Indemnity (P&I) Clubs have announced premium increases for the February 20, 2026 renewal, addressing underwriting performance and rising claims costs.
Announced increases by Club:
- Steamship Mutual: 8.0% premium increase
- UK Club: 7.5% P&I premium increase
- American Club: 8% target increase on expiring rates
- NorthStandard, Britannia, Gard, Japan Club, Swedish Club, West of England: 5.0% general or targeted increases
Deductible changes:
- American Club: Increasing all deductibles ≤$25,000 by $1,000
- Britannia and UK Club: Increasing all P&I deductibles under $50,000 by 10%
Reinsurance rate changes (International Group program):
- Container ships: 15% increase to $1.0237/GT
- Tankers (persistent oil): 8% decrease
- Passenger vessels: 8.5% decrease
- Dry cargo: 5% decrease
Announced increases by Club:
- Steamship Mutual: 8.0% premium increase
- UK Club: 7.5% P&I premium increase
- American Club: 8% target increase on expiring rates
- NorthStandard, Britannia, Gard, Japan Club, Swedish Club, West of England: 5.0% general or targeted increases
Deductible changes:
- American Club: Increasing all deductibles ≤$25,000 by $1,000
- Britannia and UK Club: Increasing all P&I deductibles under $50,000 by 10%
Reinsurance rate changes (International Group program):
- Container ships: 15% increase to $1.0237/GT
- Tankers (persistent oil): 8% decrease
- Passenger vessels: 8.5% decrease
- Dry cargo: 5% decrease
Why It Matters
The 15% reinsurance increase for container vessels reflects a high level of costly claims within the group pool. Container ship incidents—fires, cargo collapses, and pollution events—have driven disproportionate losses.
This contrasts sharply with improved experience in tanker and passenger segments, which are seeing rate reductions. The differentiation signals a shift toward risk-based pricing rather than uniform increases.
Deductible increases aim to improve loss ratios by transferring more lower-value claim exposure to shipowners. This effectively increases the out-of-pocket cost for routine incidents.
This contrasts sharply with improved experience in tanker and passenger segments, which are seeing rate reductions. The differentiation signals a shift toward risk-based pricing rather than uniform increases.
Deductible increases aim to improve loss ratios by transferring more lower-value claim exposure to shipowners. This effectively increases the out-of-pocket cost for routine incidents.
What It Affects
Costs: Container operators face both premium and deductible increases—double pressure on P&I budgets.
Risk: Higher deductibles mean more self-insured exposure for routine claims.
Operations: Enhanced loss prevention focus needed to justify future renewals.
Capacity: Clubs with favorable claims records may attract business from competitors.
Risk: Higher deductibles mean more self-insured exposure for routine claims.
Operations: Enhanced loss prevention focus needed to justify future renewals.
Capacity: Clubs with favorable claims records may attract business from competitors.
What to Watch Next
- Club financial results and combined ratios post-renewal
- Claims trends in container segment
- Any mid-term calls if loss experience deteriorates
- Alternative risk transfer and captive solutions gaining traction
- Claims trends in container segment
- Any mid-term calls if loss experience deteriorates
- Alternative risk transfer and captive solutions gaining traction