The Club has reported that whilst the incurred cost of current Policy Year claims on IG pool at this time of year is lower than budgeted, Club’s own claims for the 2026/27 policy year are higher than their initial forecast.
Although the Club has achieved its target combined ratio of below 100% on a three-year rolling average basis in recent years, it expects market conditions to remain challenging.
These challenging market conditions include, but are not limited to, member retention rate affecting on premium levels, together with inflationary pressures on claims, reinsurance and operating costs.
As a result, the Club have announced a general increase of 5% on the P&I and FDD mutual entries premiums.
In addition, the FDD Deductible will be amended as follows:
Minimum deductible will be adjusted to USD 7,500 (from USD5,000) and 25% of the claim and the maximum deductible adjusted to USD 100,000 (from USD50,000).
Changes to the International Group Reinsurance rates will continue to be passed on to Members as usual.
For non-mutual P&I and FD&D covers, no standard increase has been declared. However, premiums and terms will be reviewed individually, taking into account claims performance, risk exposure and changes in reinsurance costs.
Release calls have been set as below going forward:
P&I
- 2027/28 – 15%
- 2026/27 – 15%
- 2025/26 – 15%
- 2024/25 – 15%
FDD
- 2027/28 – 15%
- 2026/27 – 15%
- 2025/26 – 15%
- 2024/25 – 15%
The full circular can be found: WOE Circular
