Navigating P&I Renewals Month

As with all insurance, many factors play a part in determining the cost of your renewal, from an individual’s claims history to global market conditions.  High-frequency or severe claims can have a significant impact and lead to increased premiums or stricter terms, while macroeconomic factors, geopolitical risks and inflation can affect underwriting decisions across the board.

Compliance with new environmental and safety regulations, such as IMO 2023 and evolving environmental, social and governance requirements, as well as other market regulatory changes, can alter coverage terms. Meanwhile, the individual club performance, including their financial stability, investment returns and reinsurance arrangements all determine their ability to offer competitive terms to their customers. It’s also worth noting that many clubs are increasingly scrutinising vessel condition, operational standards and compliance records to help determine P&I renewal terms and cost.

The key factor in ensuring a successful renewal is preparation. Shipowners should engage with brokers and P&I clubs well in advance, to review claims history and help identify any potential areas of concern. Carrying out risk mitigation, such as implementing improvements in safety, crew training programmes and technology-driven monitoring can enhance your risk profile and strengthen your negotiation. Providing clubs with this comprehensive operational data and any risk management strategies can help you to build trust and secure favourable terms. It’s also worth exploring alternative clubs or reviewing fixed-premium insurance options to provide leverage for better terms.With increased volatility in the marine insurance sector, shipowners and operators must remain agile in their approach to P&I renewals. Understanding market trends, leveraging strong risk management practices, and negotiating effectively with P&I clubs will be key to securing cost-effective and comprehensive coverage.