The Lloyd’s List Podcast: What this year’s P&I renewals mean for shipping
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This year’s annual P&I renewals have been less dramatic than previous editions — Minimal vessel churn combined with higher premiums, improved investment returns and modest pool claims saw marine mutuals find a sweet spot. Our insurance editor David Osler pulled together a panel of industry experts to examine what it means for shipping
TUESDAY this week marked P&I renewal day. That’s the name given to the annual hard deadline for some 90% of the world fleet by tonnage entered with International Group P&I clubs to renew their liability insurance for the following year.
Historically, the date was considered the first on which Baltic ports were sufficiently ice free to be navigable. That looks rather quaint in these days of global warning. But February 20 is now hallowed by tradition, and doing things on January 1, just like everybody else, would be boring.
So this week, as is now tradition, we are dedicating the podcast to examining the fallout from the annual P&I renewals.
In 2024, things have been rather quiet by previous standards, as it goes. No major fleets are thought to have changed hands in search of better insurance deals.
The number of owners opting to do so has been in decline for some time. Clubs actively disincentivise such behaviour with a mechanism known as release calls. In plain English, that’s a penalty imposed for switching.
Premium increases were modest. Clubs were officially looking for general or target increases in the 5% to 7.5% range. But those headline rate hikes should be seen as opening bids in negotiations with brokers. In practice, most deals were settled at about two thirds of that.
We recorded this podcast on the afternoon of Thursday, February 22, by which point several clubs had made preliminary announcements about how well they have done. Five said that had gained tonnage. To name-check them, they were Gard, NorthStandard, Skuld, West of England and Steamship Mutual.
As subscribers know, Lloyd’s List offers readers easily the best marine insurance coverage available anywhere, and naturally we asked insurance editor David Osler to round up a cross-selection of the P&I people to discuss the latest developments.
Speaking on this year’s P&I round up:
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Alex Vullo, divisional director of Gallagher’s P&I practice
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Anna Vourgos, a director of Cyprus-based Aphentrica
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William Beveridge, chief underwriting officer of the UK Club
