Marine P&I clubs may raise premiums by 5% in 2027

Protection and indemnity (P&I) clubs are projected to increase premiums by an average of 5% in 2027, according to Lockton’s 2026 P&I Market Report. The anticipated hike is driven by rising reinsurance costs and geopolitical tensions that are impacting underwriting results.

While the average combined ratio for International Group P&I clubs improved to 102.5% in 2025/26, the 12 clubs still recorded a combined underwriting loss of $177 million. Over the last three years, cumulative underwriting losses reached $331 million. Historically, investment returns have served as a financial cushion, totaling $2.63 billion over the past three years, but a weakening investment market could increase pressure on clubs to improve underwriting performance to protect credit ratings.

Geopolitical disruptions, particularly affecting routes between Asia and Europe, are also contributing to volatility. Rerouting and longer transit times have increased voyage costs and created uncertainty regarding war-risk insurance premiums. Additionally, international sanctions and changing regulatory requirements continue to present compliance challenges for both shipowners and insurers.