Protection and Indemnity Clubs: Financial Review 2021

The 2021 Marsh Specialty Protection and Indemnity Clubs: Financial Review examines the case for and against general increases by the protection and indemnity (P&I) clubs.

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The 2021 Marsh Specialty Protection and Indemnity Clubs: Financial Review 2021 examines the case for and against general increases by the protection and indemnity (P&I) clubs. The use of general increases to raise premiums is deemed by most P&I clubs to be an essential part of their mutuality.

We analyze this one-size-fits-all approach to help P&I club members facing the prospect of premium increases to understand the arguments on either side of the debate.


Report

Protection and Indemnity Clubs: Financial Review 2021

For a complete financial analysis of the P&I club market


Marsh Specialty approaches this debate from our position as a long term proponent of fair P&I rates; P&I club members should pay premiums that are a reflection of the risk they represent individually plus a reasonable contribution to the shared costs of the club or clubs of which they are members.  In our opinion, there is no case for any kind of additional levy as a contribution towards surplus capital (for reasons we examine in our report).  However, most of the clubs still favor the approach of asking members to pay general increases. 

Key issues covered

  • What is the purpose of general increases and do they serve to frustrate the objective of fair rating?  
  • Are all reported underwriting losses as bad as they may seem?
  • Where clubs have incurred underwriting losses, should all members be expected to contribute to the rebalancing requirement?

In addition, the report consolidates the financial data for the International Group P&I club market as a whole, and provides analysis of the individual mutuals based around key financial and business metrics.


Explore detailed analysis of the individual P&I clubs with us


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