Executive Summary: The International Group of P&I Clubs offers a unique lens into the intricate web of maritime risk that influences both the insurance sector and the maritime industry globally. From this perspective, one thing is abundantly clear: A “new risk landscape” has emerged, says Dorothea Ioannou, chief executive officer, The American Club.
In a constantly changing world, the maritime industry has always stood as a symbol of resilience, adaptability, and progress. Key to this, however, has always been the role of insurance, and in particular, third party liability within the context of global marine mutual insurers. As we look to analyze the future of marine insurance and the maritime industry generally for the rest of 2023 and beyond, a new landscape of risk challenges and opportunities emerges.
Globally, the International Group of P&I Clubs, a collective of 12 independent third party marine liability mutual insurers, together insure over 90% of the world’s ocean-going fleet for third party liabilities, such as ocean pollution, crew and passenger illness and injury, damage to cargo and other third party property such as resulting from collision, to name a few. For the average person, this may not mean something, but when you consider that 90% of the world’s goods are transported by sea, this translates to an insurance mechanism that essentially enables global trade.
The pool provides a mechanism for sharing all claims in excess of US$10 million. Through this pooling reinsurance mechanism, the group clubs arrange a common market reinsurance contract to provide