Japan P&I Club hikes premiums 7% for 2025

The decision comes as the association grapples with a high volume of claims.

Japan P&I Club plans a 7% general increase in mutual premium rates for owners’ entries for the 2025 policy year, alongside a 15% release call. 

These adjustments were made to address growing claims costs and global inflationary pressures whilst ensuring the association’s long-term stability.

The decision comes as the association grapples with a high volume of claims from policy years 2019–2021, coupled with rising pool claims within The International Group of P&I Clubs for 2024. 

Despite a strong combined ratio of 91.2% for 2023 and a 29% year-on-year increase in reserves by March, the association emphasised the importance of aligning premiums with escalating claims expenses to maintain financial robustness.

For the 2025 policy year, members’ rates will be further adjusted based on individual claims records and reinsurance program costs. 

Whilst charterers’ entries will also see a premium increase, Naiko Class entries and FD&D cover will experience no general increase, though rates may be adjusted for claims performance.

The association noted that rising geopolitical and natural disaster risks, along with market uncertainties, will continue to influence its premium strategies. 

The 15% release call rate for 2025 reflects these factors and will be reviewed annually to maintain fairness and financial prudence. 

These measures underscore the association's commitment to navigating heightened claims and inflationary pressures whilst safeguarding its members' interests.