Following the Board meeting in Seoul this week, the outlook for 2027 renewal and opportunities created by the forthcoming TT Club merger were among the key topics discussed.
The Club remains financially strong and on track for a 100% combined ratio in 2026/27. Nevertheless, reinsurance costs are expected to increase in 2027 due to deterioration of older large Pool claims including the final development of the well-known DALI loss.
Additionally, claims inflation remains a significant concern, with clear upward pressure across most categories of claims, particularly illness and injury claims. The cost and complexity of major casualties also continue to increase, with salvage, environmental response, specialist contractors, repairs and third-party liabilities all capable of rising materially faster than general inflation. This reinforces the need to maintain pricing discipline and ensure that premium keeps pace with the changing cost of claims, even when headline claims frequency or Pool experience appears relatively benign.
Against this background, the Club have decided on a 4.5% General Increase for the 2027 policy year, striking an appropriate balance between maintaining underwriting discipline and recognising the benefits of the Club’s strong financial position and the developing value of the merger for Members. Individual renewals will continue to reflect each Member’s record, risk profile and existing terms. The Club will also target a 10% increase in deductibles below US$50,000, subject to a minimum increase of US$1,000.
Release Calls
The following release calls have been agreed for the open policy years:
- 2024: 5%
- 2025: 7.5%
- 2026: 10%
- 2027: 12.5%
With the forthcoming TT Club merger and acquisition of Thomas Miller it will not only create greater scale and financial resilience but also provide benefits such as greater investment capacity across claims handling, underwriting expertise, loss prevention, data, technology and other specialist services, while maintaining close relationships with Members.
At the same time being able to preserve the specialist identities and member-focused service models of both Clubs.
Finally, the Members’ Committee was also pleased to welcome seven new Directors elected during the meeting:
- Dr. Ricardo Alvarez, John T. Essberger GmbH & Co. KG, Germany
- Secretary Elaine Chao, Foremost Group, USA
- Hakki Deval, Devbulk, Turkey
- Young Ju Kim, Pan Ocean Co., Ltd, South Korea
- Takahiro Nito, NYK Line, Japan
- Lavanya Sareen, Norwegian Cruise Line Holdings Ltd., USA
- Fumiyoshi Sato, “K” Line, Japan
Full details of the announcement is available in the Club’s circular.
