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As the maritime industry grapples with escalating claims and evolving global risks, Protection and Indemnity (P&I) clubs are recalibrating their approaches for the 2025/26 policy year. From targeted premium increases to strategic financial adjustments, these mutual insurers are striving to maintain stability in an unpredictable environment.
P&I Club Strategies for 2025/26
Club
General Increase
Financial Highlights
Notable Developments
UK P&I Club
6.5%
6.6% investment return; Free reserves at $494M
Anticipates combined ratio exceeding breakeven due to significant claims, including the "Dali" incident.
American Club
7% target increase
Premium income exceeding $130M
Achieved 94% business retention; focused on rate adequacy amid increased Pool claims.
Britannia
Minimum 7.5%
Capital distribution of $30M to renewing members
Implemented deductible increases; targeting underwriting balance over next 2–3 years.
Skuld
No general increase
6% growth in mutual P&I gross tonnage
Opted for individual risk-based pricing; maintained strong financial position.
NorthStandard
5%
Combined ratio at 114%
Faced increased Pool claims; retained 'A' rating from S&P Global.
Note: Data reflects information available from leading P&I Clubs as of June 3, 2025.
Geopolitical and Regulatory Pressures
From sanctions workarounds to elevated war risk zones, the global maritime insurance market is navigating a shifting landscape of geopolitical pressures. Governments and international bodies are increasingly involved in shaping underwriting norms and compliance expectations. Recent moves such as India’s approval of Russian P&I providers and the EU’s reassessment of regional maritime exposure, highlight the growing complexity. Meanwhile, the upcoming UN Ocean Conference is expected to further pressure insurers to align with global decarbonization goals.
Global Pressure Points in Marine Insurance
Region
Risk Driver
Insurance Response
Red Sea
Security incidents and Houthi missile attacks
War risk surcharges up 200%; rerouting clauses included in hull and cargo policies
Black Sea
Ongoing conflict and war zone designation
Coverage exclusions common; EU considering a regional maritime risk coordination hub
India
Continued import of sanctioned Russian cargo
Government granted approval to additional Russian P&I insurers to maintain trade flows
Asia-Pacific
Increased Chinese naval activity and Taiwan tensions
Rising war risk premiums for routes through South China Sea and Taiwan Strait
Global (UN)
Climate accountability and green transition compliance
UN Ocean Conference expected to push insurers toward ESG-linked underwriting criteria
Note: Data reflects regional insurance responses to geopolitical developments as of June 3, 2025.
Reinsurance and Capacity Shifts
As marine insurance exposures intensify, reinsurance providers have adjusted pricing and policy conditions to reflect elevated global risk. The 2025–2026 reinsurance cycle saw the Group Excess of Loss (GXL) program renewed with higher pricing in the container segment, while cyber and war risk coverages remain constrained by sublimits. The market’s capacity is holding firm, but more selective underwriting is becoming the norm.
Reinsurance Highlights 2025/26
Reinsurance Type
Coverage Limit
Notable Changes
GXL (General Excess of Loss)
$2 billion above $100M retention
Container segment rate increased by 23.6%; premium adjustments for high-risk vessel classes
War Risk
$500 million
Maintained with exclusions for specific piracy zones and sanctioned entities
Cyber / Malicious Acts
$1.35 billion (aggregate annually)
Renewed with capped coverage and strict loss reporting protocols; continued scrutiny on operational tech exposures
Note: Data reflects finalized marine reinsurance structures for 2025–2026 based on industry reporting and broker disclosures.
ESG and Rating Outlook
Environmental, Social, and Governance (ESG) metrics are now central to how Protection & Indemnity (P&I) Clubs are evaluated. Rating agencies and institutional stakeholders are increasingly tying club assessments to decarbonization compliance, diversity in board representation, and governance transparency. As a result, clubs that fail to demonstrate climate risk disclosure or transition alignment face mounting pressure—not only from regulators but also from charterers and financiers.
ESG Trends in Marine Insurance
Focus Area
Industry Action
Impact
Decarbonization Disclosures
Clubs required to outline GHG alignment in 2025 reports
Influencing underwriting credibility and charterer relationships
Board Diversity
Pressure to diversify executive boards among top 12 IG clubs
Tied to ESG fund eligibility and global benchmarks
Governance Practices
Push for clearer member accountability and claims handling transparency
Seen as critical to regulatory trust and reinsurance negotiations
Note: Based on insurer disclosures, ESG rating criteria, and industry guidelines.
The world of maritime insurance is undergoing rapid transformation, spurred by global conflicts, climate accountability, and an evolving regulatory landscape. From reinsurance pricing shifts to ESG scorecards and geopolitical recalibrations, P&I clubs are navigating a volatile but highly consequential period. As these dynamics unfold, adaptability and transparency will likely determine not only who insures the global fleet, but under what terms, and at what cost.
