Protection and Indemnity Market Review 2017

P&I Market Report – September 2017

We are pleased to launch our latest annual report on the International Group Protection & Indemnity (P&I) market.

Our annual report looks into the health of the P&I sector and finds that continued pressure on the shipping industry means shipowners and operators must redouble their focus on costs, including the cost of insurance.

Once again the managers of the 13 P&I clubs have responded to our questionnaire looking at the differing issues confronting the industry they serve, as well as the clubs themselves.

Their answers have revealed a range of opinions on vital matters including release calls and whether they are still needed given the exceptionally strong capital positions of clubs under Solvency II. 

The main theme of our report is that the P&I clubs should reduce rates. We argue that these have been artificially inflated via over-reserving of claims costs. We introduce the JLT P&I Rating Engine, a unique P&I premium modelling tool, which demonstrates how inflated costs at the macro level influence individual P&I club member premiums.

Download P&I Market Report

For further information, please contact Mark Cracknell, Senior Partner, Marine Division on +44 20 7558 3816 or email mark_cracknell@jltgroup.com