The mutual protection and indemnity insurance industry is going through testing times. Costly casualties are leading to stretched finances at the P&I clubs, and generating more premium from shipowners looks to be the only solution. TradeWinds’ business focus looks at what is at stake for P&I clubs at the upcoming February policy renewal.
Below you can read each story in the report.
- Protection and indemnity insurers are facing a make-or-break February policy renewal amid fears that, without securing more premium, some may be unable to survive further underwriting losses.
Consolidation of protection and indemnity insurers might be back on the cards as strained finances expose the financial fragility of the mutual system.
Some shipowners may find additional International Group reinsurance premiums are even more costly than general increases.
- At a brief glance, the 13 mutual members of the International Group of P&I Clubs would appear to show a group of marine insurers that all have remarkably similar business models. But there is one club that stands out as uniquely different and appears to be dodging the difficulties that are blighting its rivals.
- Nearly all of the protection and indemnity mutuals have diversified in recent years into the fixed premium market for small ships, in which the Shipowners' Club specialises. The Shipowners' Club has had its own fixed premium facility since 1997, which was initially provided for fishing vessels.
- The UK P&I Club has decided to join the growing list of protection and indemnity insurers diversifying into fixed premium marine insurance. But while most P&I mutual insurers have had to painstakingly build a portfolio of fixed premium work, the UK Club has been gifted a huge book of business by its third-party manager Thomas Miller.
- While much of the focus has traditionally been on the Far East as a potential alternative to mainstream protection and indemnity insurance, Russian marine insurers have been largely overlooked.
- Turk P&I started out in life focused on its local market but has grown on the international stage.
- Shipowners face the biggest hike in protection and indemnity premium in more than a decade at the upcoming renewal, but this year is unlikely to mark the end of increases.
- Protection and indemnity insurers are leading the way in providing online data-led intelligence to shipowners as a way of adding value to insurance services.
The P&I business focus appeared in our latest weekly E-paper. Read it here
