Global Marine
Protection & Indemnity (P&I)

As P&I clubs address premium erosion, general increases have made a comeback. At a time when shipping, like most of the global economy, is suffering, this continues to add additional pressure.

As a mutual insurance association, P&I clubs provide risk pooling, information and representation for members. P&I insurance covers risks that are not typically placed in the traditional insurance market. Typical P&I cover can include a carrier's third-party risks for damage caused to cargo during carriage, war risks, and risks of environmental damage such as oil spills and pollution.

A challenging horizon

Much has been said of applying a general increase as means of blanket raising premiums across all members, regardless of individual account performance. With all the actuarial and modelling skills available, P&I clubs should now be in a position to apply increases that relate to adverse loss records.

Clubs should adopt an analytical approach when seeking increases, rather than a unilateral approach. When working with organizations a more detailed analysis of each member’s risk profile hand-in-hand with the context of club performance and the marketplace is encouraged.

Access information on industry topics and financial and P&I-specific market information on all International Group P&I clubs in Aon’s P&I Passport.

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