Howden P&I Club Review 2026

White papers

4 minutes

04 February 2026

A market under pressure, between geopolitical volatility, inflation, and emerging risks.

Howden publishes its P&I Club Review 2025, an in-depth analysis of the maritime insurance mutual market and the issues related to the renewal of Protection and Indemnity (P&I) for 2026.

In a global context of instability, this study is an essential tool for shipowners wishing to:

anticipate the evolution of their P&I contributions,
understand the financial solidity of the Clubs, and
prepare for renewals in all serenity.

An unstable geopolitical environment that increases the risk of P&I.

Maritime trade is evolving in a climate of increasing uncertainty, marked by:

of persistent political tensions ;
of disrupted strategic routes (Red Sea, Suez) ;
an increase in security and compliance risks.

These dynamics exert direct pressure on P&I Clubs, confronted with an increase in complex claims and the need to strengthen their capacity to absorb shocks.

In this context, financial health of the Clubs is more crucial than ever.

Consolidated reserves thanks to strong investment performance

The study highlights an evolution trend: Clubs have recorded +831.2 million dollars in investment revenues cumulated over three years, offsetting 37 million dollars in technical losses during the same period.
This dynamic benefits the reserves, but strategies differ among clubs.

Some redistribute capital or grant credits to their members;
Others resort to additional contribution calls to preserve their stability.

This heterogeneity complexifies comparisons and reinforces the necessity of expert support for P&I renewals.

The International Group: a cornerstone for facing major disasters

The International Group (IG) remains the key to the P&I mutual system's structure thanks to its Pool mechanism and global reinsurance program.

The study reminds that major disasters - such as the DALI incident, whose cost could exceed 3 billion dollars - can only be absorbed through this architecture.
In the event of an exceptional event exceeding the capacities of the Pool, an overspill call could be activated, involving all members, regardless of their Club.

If the UN strengthens global stability, it nevertheless allows certain points of friction to emerge.

Transparency and harmonization: strong expectations from shipowners

The P&I Club Review identifies several major operational irritants:

arbitrary release calls;
lack of clarity in the allocation of reinsurance increases according to the types of vessels;
unharmonized methodologies of loss records, complicating comparisons between Clubs.

Transparency thus becomes a strategic issue to facilitate renewal discussions and restore confidence.

The IG retention rate: a level unchanged since 2016 that raises questions

Fixed at 10 M$ since 2016, the retention of the IG has not followed inflation: in 2026, it should theoretically be around 16.3 M$.
This status quo raises several questions:

increased dependence on the Pool;
reduced differentiation between Clubs;
sensitive debate on variable retention among Clubs - difficult to implement in a strict competitive environment.

The Dark Fleet: an emerging risk with major implications

The "ghost fleet", operating on the margins of regulatory frameworks and often linked to sanctions evasion, represents a critical risk for the maritime sector today.
Its potential impacts:

pressure increased on compliance obligations for Clubs and shipowners;
high risks of unrecoverable losses;
Possible deterioration of claims experience and increase in premiums for compliant members.

Howden emphasizes that a specific mutualization mechanism could become necessary to cover these risks linked to sanctions.

In a P&I market where risks are evolving faster than models, our role is to provide each shipowner with a clear, objective, and anticipatory understanding of their exposure. The current complexity should not be endured: it can become a decision-making tool when properly supported.

2026: towards a sustainably complex P&I market

The study reveals a underlying trend: the P&I market is entering a phase of enduring complexity, characterized by geopolitical tensions, inflation, disruptions of trade routes, and emerging risks.

In this environment, Howden positions itself as a key partner in marine insurance consulting, capable of supporting shipowners, charterers, and operators, thanks to:

a dedicated maritime expertise;
historical relationships with the 12 IG Clubs;
24/7 availability;
a global network strengthened, supported by new specialized Marine locations in the United States, Japan, and Norway, offering local support in over 120 countries.

This review aims to foster a constructive dialogue between shipowners, Clubs, and the IG, in order to support the necessary evolutions of the model and secure future renewals.